Hello all, I have a problem that I cannot find an answer for. My Fianc? wanted to retire last April. She wanted me to retire with her so we could travel together. She is just giving me money along the year to have spending money. She is paying all bills. How do I file taxes on what I make?===you as a recipient of the gifts do not need to report the gifts on your return UNLESS you provide services with her; in general, any income for services that you provide to someone else, whether an individual or a business, is always taxable income to you, regardless of the nature of the services that you provide. The limit per person without filing a gift tax form is $14K for 2016. If your fianc gifts more than 14K to you, she must file IRS Form 709, the gift tax form for the tax year that she has made the gifts. She has a lifetime limit of 4.54M for 2016 million dollars (after the 14K exclusion per person amount) before the gift tax will kick in. Up to that amount, gift tax is wiped out by something called the Unified Credit. Gifting during her lifetime may also impact the amount of unified credit allowed against her estate tax.
She has already paid taxes on this money once=>As mentioned above;