giving adult children money
Hi Terry, Our adult daughter has returned to college and we give financial support of over $18K. We send the money directly to her checking account so she can pay her bills. Is this ok? Will she have to pay income tax on the money? Should we just pay her rent and utilities directly?
Terry Says
No taxes involved. It is considered a gift. And you can EACH gift up to $18,000 a year to any person (so a total of $36,000) without any estate or gift tax implications.
