Does this deposit break the gift limit for 2020?

[financial.freedom]

My parents decided to each give me a 10k check as a gift for 2020.

They said they're allowed to each give me up to 15k before exceeding the gift limit -- is this correct? I'm concerned that because they have the same last name and both checks are from the same checking account the IRS could view it as a single gift of 20k.

Thank you in advance!

[HomeStretch]

Yes, each parent can gift you up to $15,000 in 2020 before a gift tax return would need to be filed.

[GreenerPastures]

They are correct. Each of them may gift you up to $15k per year. Be sure to give them a hug!

[financial.freedom]

Thank you for the replies. This was really unexpected. Definitely will give them a big hug. Plan is to put it into 529 -- now I have to figure out the limit for that as well.

Cheers!

[GreenerPastures]

They may also gift your spouse up to 15k per year. Double hug

[dukeblue219]

My parents decided to each give me a 10k check as a gift for 2020.

They said they're allowed to each give me up to 15k before exceeding the gift limit -- is this correct? I'm concerned that because they have the same last name and both checks are from the same checking account the IRS could view it as a single gift of 20k.

Thank you in advance!

Even if it did (perhaps they had already each given you $10k already) it would be their problem, not yours, and all it would do is force them to fill a form, and it would count against their estate taxes when they pass on.

There's also not really any active reporting for this sort of thing. Oh don't get me wrong, you don't want to mess with the IRS by hiding anything, but I sense from your post you are worried that the bank may report your checks and an automated system might flag them. Not gonna happen.

[MP123]

They may also gift your spouse up to 15k per year. Double hug

And your child (I assume) with the 529 too.

[student]

They are using two checks, there should be no problem. To make it even clearer, maybe one check says from Dad and the other one says from Mom in the memo section.

[Cubicle]

Showing this thread to my parents tomorrow with an open palm...

[Financologist]

Are you the long-term care plan?