Gift is not income. So the recipient doesn;t pay tax as income.

Gift tax related to estate tax, that's why IRS wants to have limit each year--eventually IRS has a chance to collect estate tax when the donor dies.

IRS publication 590 maakes it clear that following gift are not taxable:

8226; Gifts, excluding gifts of future interests, that are not more than the annual exclusion for the calendar
year,
8226; Tuition or medical expenses you pay directly to a
medical or educational institution for someone,
8226; Gifts to your spouse,
8226; Gifts to a political organization for its use, and
8226; Gifts to charities.

A foreign person gives a gifts to a U.S. person, there is no tax--1st, recipient has no tax obligation, and the IRS has no legal right to the foreign person. It is the foreign government's business to decide about tax. 2nd, it is good for the IRS--any gift from other country give a chance for IRS to collect more money.

If you try to figure out the tax logic, you will find out IRS is always willing to give credit to promote the posibility of an american to earn more.

所有跟帖： 

• a-mao,你打算咋算你女儿的收入，咋交２００８税呀 -月半婆婆- ♀ (41 bytes) () 02/17/2009 postreply 16:30:10

• 原来你是阿猫啊.回头再想想,是你就对了. -apricotseed- ♀ (0 bytes) () 02/17/2009 postreply 17:11:28