Taxes owed

  • Creator
    Topic
  • March 26, 2017 at 2:59 pm #1523163
    Spartans92
    Participant

    Hey,
    Im not sure if I can ask this question but I can’t find anything on google. If my parent owes taxes am I allow to make the payment for them or they have to make the payment on their own? Would this consider as gift tax if the amount is over 14k??

    Thanks

    BEC- PASS

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    Replies
  • March 26, 2017 at 3:07 pm #1523167
    Missy
    Participant

    I think you can give them each 14k before the gift tax applies so anything over 28k would be taxable.

    Licensed Massachusetts Non Reporting CPA since 2012
    Finance/Admin/HR Manager

    March 26, 2017 at 3:09 pm #1523169
    Spartans92
    Participant

    Thats right! Thanks Mla. Don't we love Taxes.. Ugh.

    BEC- PASS

    March 26, 2017 at 3:26 pm #1523181
    Spartans92
    Participant

    So Just to clarify, I could make the payment on their behalf, right?

    BEC- PASS

    March 26, 2017 at 4:18 pm #1523196
    Missy
    Participant

    I can't say with certainty but I think you can.

    Licensed Massachusetts Non Reporting CPA since 2012
    Finance/Admin/HR Manager

    March 26, 2017 at 8:27 pm #1523316
    Anonymous
    Inactive

    You can make a payment on their behalf in ANY amount. Over a certain amount however, gift tax implications arise. You may also help them negotiate a payment plan with the IRS so you could gift them the money over 2 years time (or more depending on the amount). The penalties and interest may be less than the tax they pay on the gift. You just have to run the numbers.

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