It depends on the type of bill. Payments for medical, dental, and tuition are not subject to federal gift tax laws. But if you are paying other bills, you will be subject to the laws. This means that if you give away $14,000 or less to any one individual, you do not have to report the gift or gifts to the IRS. If you are married and file jointly, then you can give a total of $28,000. If you give away more than $14,000 to any one person, however, you will have to file a Form 709, the gift tax return. But just because you file a Form 709 doesn’t mean you necessarily have to pay taxes. The IRS allows you to give away a total of $5.43 million during your lifetime before a gift tax is owed (this is the threshold as of 2015).
We work with individuals and families to develop estate plans. Each individual’s needs are unique and this article only provides an overview of one aspect of Gifting. For more detailed information and to discuss your specific case, call us today at (678)781-9230 or email us at sgrissom@grissomlawfirm.com to schedule an appointment.