Do credit card payments count as a gift?
Credit Card
foxboro99 asked:
My father offered to pay my credit card off. If he sends a check for $18,000 directly to the credit card company, does he need to report it as a gift?
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My father offered to pay my credit card off. If he sends a check for $18,000 directly to the credit card company, does he need to report it as a gift?
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February 26th, 2009 at 10:04 pm
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Yes, that would be a gift. A payment by him directly to a school for your tuition, or to a medical facility for medical expenses, wouldn’t be.
February 27th, 2009 at 9:21 pm
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Of course he does.
He just made a $6000 taxable gift to you and needs to file a form 709.
March 1st, 2009 at 9:01 am
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WOW! $18,000?!?! Can I have your dad adopt me?
I would call his accountant (someone that can cut a check like that has to have an accountant) and ask him\her. If he doesn’t have an accountant then maybe ask someplace like H&R Block.
March 3rd, 2009 at 5:39 pm
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Man…I’m sooo jealous…wish I had your dad! (sorry…I don’t know the answer to your question, but just had to throw that in!)
March 6th, 2009 at 9:54 pm
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If your mother is still in the picture, they can give you a gift of up to $24,000 without having to file a gift tax return.
Also, if you are married, your dad can give $12,000 to you, and $12,000 to your spouse without triggering a gift tax return.
In any event, even if he is required to actually file a gift tax return, he probably won’t owe any money on it because of his lifetime exclusion.