I Was Gifted Money, Now What?

Know the Gift Tax Limits:

As of 2025, you can receive up to $19,000 per person per year without triggering gift tax rules. If the gift exceeds that amount, the giver- not you- may need to file a gift tax return (Form 709). However, they likely won't owe any tax unless their total lifetime gifts go over the federal exemption, which is over $12 million.

Keep a Record of the Gift:

Even if the gift is under the limit, it's smart to document it. Write down who gave you the money, the date you received it, and the amount. A simple email, or letter, can serve as proof in case there are any questions from the IRS later on.

Understand How Taxes May Apply Later:

The gift itself isn't considered taxable income, so you won't owe tax on it. But if you use that money to invest, save, or buy something that generates income - like stocks or rental property - that income will be taxable and must be reported on your tax return.