I received $13,000 from my ex-husband. It's not child support, it's "guilt" money because he has had nothing to do with his daughter for over 30 years.

Can I deposit this without the government asking a lot of questions? And from what I understand, it's a gift and I don't need to report unless it was from overseas or gambling money.

Please help!

If it wasn't court-ordered then yes, it is a gift and you may be subject to gift tax. When you deposit it, because of the amount, your bank will report it to the IRS.

I thought that too, that any amount over $10,000.00 is reportable. But I was not quite sure if that had changed.

Yes, so you will want to keep it under that 9999 figure and broken up into severarl smaller payments.

And if he is still feeling guility, we need a new tires for car truck we use in our elderly ministry

Well, I hope I'm not in trouble. We deposited it. I had gone to the IRS site, and found this: for Line 21

NONTAXABLE AMOUNTS:

Child Support
Life Insurance proceeds
Gifts and bequests are non-taxable. However, if you received a gift or bequest from a foreign person of more than $13,258, you may have to report that info... etc. etc.

Well I read where the statutory monetary exclulsion for 2007 is $12,000.00 (due to inflation). Hopefully Atlanta Tax Expert will see this question and give his opinion.

Hello beth:

The assumption has been made so far, that the $13K you received is in CASH. If that's so, then the advice you received is valid. However, if it was a check, then you deposit it and go on with your life. There is no reporting requirement for checks.

I don't know if you'll have to pay taxes on it, but that's another question.

excon