Received money as a gift _ Tax considerations???

[Grande]

I have a question about gifts from family members and specifically the individual limit ($14,000) as it relates to taxes. My wife’s aunt gifted her $20,000 by check. The check was written out to her (not her and me).

Am I correct that the tax considerations are on the donor and not the recipient? The $14k related to the my wife's aunt and not us? Anything to do on my end?

Thanks?

[Spork]

That is my understanding as well.

And had aunt given it jointly, I believe there would be no considerations for anyone.

[Sibley]

Yep, OP, you're off the hook. The aunt may have a tax bill.

[redcedar]

Agreed with previous posts. It's the aunt's issue to deal with. She may have a tax hit for the amount above $14k. If you want to discuss it with her, you may be able to fix it but you would want to be very judicious in your documentation.

[seattlecyclone]

Unless this aunt has more than $5 million it's unlikely they'll owe any tax. She'll have to file a form to count the part over $14k toward her lifetime exemption for the gift tax and estate tax put together, but no tax is due until that exemption amount is used up.

[Spitfire]

Unless this aunt has more than $5 million it's unlikely they'll owe any tax. She'll have to file a form to count the part over $14k toward her lifetime exemption for the gift tax and estate tax put together, but no tax is due until that exemption amount is used up.

Correct. Nothing will be due unless she goes over the lifetime exemption amount, which most people will never. She will still have to file a gift tax form to keep record of the $6,000 that she went over for the year.

[DevoCPA]

no gift tax return is required. You're married. She gave the money to both of you regardless of what the check says.