Parents giving me a $40,000 check. Do I pay any taxes on it?
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The IRS could potentially come after you for the tax if the donor doesn’t pay, but usually the tax burden falls on the person who gave you the gift. To correct the above statement slightly. In 2025, the limit is actually $19,000 per individual and $38,000 for a married couple filing jointly (source).
You generally won’t owe taxes on a $40,000 gift from your parents. The IRS treats gifts as transfers from the giver, not the recipient, so any reporting falls on them not you. For 2025, each parent can give up to $18,000 tax-free; anything above that just requires filing a simple gift tax form, not paying tax. You’d only owe taxes later if you invest the money and it earns income or gains.