Question : will the government look at my saving account and tax me?
Ok I get a gift of $2000 every month cash none taxed from my relative. I put it in my saving account. will the government tax me for this money? Also will finanical aid be effected by this money I am currently a student.
- asked by unknown11233
All Answers:
Answer #1
Your relative needs to file a gift tax returnsince the annual total is more than $12,000.You donot file anything unless the bank account paysinterest...and then your report only the intereston your tax return.Yes, FASFA will care. FASFAexpects you to contribute like 35% of your assetsto your education expenses and this is an asset.
- answered by v b
Answer #2
Gifts are NOT taxed to the recipient. Banks areonly REQUIRED to report transactions of $10,000 oflarger. They CAN report any transaction theyconsider suspicious, but probably would consideryour suspicious. The primary purpose for thereporting is to detect money laundering, NOT fortax purposes.Financial aid MAY be affected as itis supposed to consider ALL your assets.EDIT:Regarding gift taxes. If your relative ismarried, they can treat the gift as $12,000 fromthem and $12,000 from their spouse. Thiseliminates the need to file a gift tax return.
- answered by STEVEN F
Answer #3
The IRS, believe it or not, is a PRIVATEinstitution and is not a legal entity of thegoverment. I strongly suggest you read a bookcalled THE CREATURE FROM JECKYL ISLAND which talksabout how the irs was created and the federalreserve system.It will shake you to the core.Thatbeing said, there is good news and bad news aboutyour question.First the bad news. Yes the I.R.S.can get money and they can even go into yoursavings account and take it. Years ago I neverfiled taxes. I never had any problem at all. Mydad kept telling me to file..over and over yearafter year he would nag me. Finally I did file mytaxes and all hell broke lose.They went into mybank accounts took the money, put liens on me Imean it was horrible. I hate to say this but it'strue..I believe I would have been better off notto file taxes in the first place.Many folks don'tfile and they are under the radar of the irs butif the irs starts seeing money going in and out ofaccounts (they are hooked up to the banks systemsat any time they can see what you have) they willget it.Now..thats the bad news. So what's thegood news?The good news is LEGALLY they cannotattach the money unless YOUR bank notifies you inwriting. I know this sounds weird but you caneven take the money out after you get notice. However the IRS can constantly try to attach itunlimited amounts of time.What I would advise youto do is, when you get this money from yourrelative have them write you a note saying "THISIS A GIFT" and then sign it. Then don't reportit to the IRS of course but if the IRS ever rearsits immoral and evil head you can have those giftletters there to extinguish its fire.
- answered by Rick A
Answer #4
You will not be taxed on the gift that youreceive, just any interest that the moneygenerates. Your relative, however, will need tofile a gift tax return because the gift exceeds$12,000 per year. There may or may not be gift taxto pay, depending on the circumstances.As for yourfinancial aid, I would bet that you would have toreport the money as cash on hand or as a gift onyour FAFSA.
- answered by PhunkyPhreshCecil
Answer #5
if the money is in an interest-bearing savingsaccount, then yes, you will be taxed on theinterest
- answered by GFBanker
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