If you want to send money online, every transaction is bind with a tax deduction.
No matter which platform you use, the tax-thing is always there.
But luckily, you can mark some money as a gift and send it free via PayPal in the USA.
And like this Paypal stuff, I wanted to find a list of GIFT items that are tax-free, especially in the USA.
In essence, not all kinds of gifts are taxed, and vice versa. Gifts that come from or to a charity, religious groups, or educational groups are often tax-free. Dietary Foods, groceries, medical devices, some beverages, health supplements, and medicines are free from sales tax (though people rarely use them as gifts). Every state of the USA is different and tax variations also exist.
State-wise Non-Taxable Items or Gifts in the US (Infographic)
Here is the detail below –
|Computer Hardware & Accessories
|For Teachers only
|Item that values under $50
|The item that values over $100
|Candy with Wheat Flour
|Candy without flour is taxable
|Included in meal tax though
|For cooking, pumpkins are non-taxable and for decoration, they are taxed.
|Foods or Items that are only for consumption.
States That Don’t Have Sales Tax – So on Gifts
If you are from the following states, you are lucky that you live in such states where you have no sales text and buying stuff for gift is simply cost you less.
|Income Per Capita
Tax on Gifts | How Much Is The Annual Fee?
The Internal Revenue Service (IRS) actually take responsibility to apply fees on gifts and collect from the respective people accordingly.
You can gift $15k in a year as a gift. Any access of it, will have to filed and documented in the gift tax return.
Gifts to political organizations, spouses, charity organizations are non-taxable.
According to the last year Tax Paper, If your child is married – you can gift them $14k a year and even your wife can do so.
Do you have any comments on this?
Don’t hesitate to comment below. 🙂