Ask Terry Questions monetary gift for tax purposes

monetary gift for tax purposes

By Terry Savage on September 12, 2014 | Wild Card


My wife was born and raised in the Philippines and virtually all her family still lives there (not Manilla). Since we’ve been married in 1987, we’ve either sent them clothes, food , or money especially for the parents. Her parents have been in declining health so money is entirely used for their medicine now. Living conditions are so different from what we’re accustomed to here in America that they expect and need our continual support. Normally we’d look at Red Cross or Salvation Army for gift giving but just wondering if we can do something tax wise when we provide support to specific individuals that we are currently do and can get by outside of all this bureaucratic red tape.

Your advice would be welcome and appreciated. We contribute quite a lot over course of a year.


Terry Says:  If you’re providing support for a relative, you’re not alone.  According to a recent WSJ article, 43.5 million Americans look after someone age 50 or older, up 28% from 2004. On average, each spends about $5,534 a year providing that care, according to the National Alliance for Caregiving.

And there are some income tax breaks availaable if you provide more than 50 percent of the person’s financial support, with some income limits.   (This does not include minor children or handicapped adult children.)

BUT, in your case there is a big catch:  The person must be a U.S. Citizen, or a legal resident of the U.S., Canada, or Mexico!   I’m afraid, based on your question, that rules out taking any deductions for your wife’s family unless they are U.S. citizens.



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