Theoretically would I need to pay taxes on gifts from separate people if they all total up to less than $1000 each person, but are well over 3,000 USD collectively (This is in the USA)?
As of 2018, a person can annually receive up to $15,000 from any one individual, without having to pay any income tax on that gift. Any number of individuals can gift money under that $15k limit to one person. That is, there is no TOTAL gift limit for a single person. You can receive $1 million total from 1,000 individuals, and still have none of it be taxable to you so long as no individual gave you more than $15.000.Any amount about $15,000 is considered ordinary income, and taxable as such on you (the gift receiver’s) income tax.Where there gift GIVER obtained the money from is irrelevant. There is no tax on gift GIVING money - that is, if I write you a check for $15,000, I, the gift giver, do NOT incur any additional tax on that $15,000. However, I do NOT get to claim that $15,000 as a deduction on my own taxes.Now, I had to get that $15,000 from somewhere, and I probably had to pay taxes on it from whence I got it. But if I’ve already got $15,000 of my own money, I incur no further taxes merely because I gave it to someone else. That includes money over the $15,000 limit for recipient taxes.TL;DR:In the USA, there is no “gift giving” tax. The giver of a gift does not owe any tax on the amount given, but also cannot claim that gift as a tax deduction.For gift recipients. they can be given up to $15,000 from any individual without incurring any tax; gifts over $15,000 incur ordinary income tax on the amount over $15,000. The number of gifts given to one person per year is irrelevant - only the total amount given by one individual to another matters.
What is the purpose for the gift tax?
You, like most people, don't fully understand the gift tax. You can only gift $13k per year without using your exemption. After your exemption, the gift tax doesn't kick in right away although you are required to file a gift tax return (Form 709). Then you get a lifetime credit (currently over $1 million) to use against any gift tax. Once you've used up your lifetime credit, then you start paying gift tax. If you bought someone a $25,000 car and a $250,000 house this year, and you've never given a gift of that size before. Your gift tax would be zero. We have a gift tax to prevent people from gifting everything to get out of inheritance taxes.
$60,000 enough to live comfortably as a stay-at-home mom?
Lately I've been really thinking about staying at home to raise my kids, at least until they're a bit older. If my husband makes AROUND $60 to $65,000/year as a registered nurse, do you think that would be enough to live comfortably and be able to do nice things for my kids (take them places, feed them healthy food, do family things)? We don't want to live fancy lives and buy expensive things that we don't need. We don't want a big house, but we want to have a nice life and not have to struggle too much financially. It would be just my husband, me, and hypothetically 2 children.
If I give you $1 million right now, what would you do?
If you gave me a million dollars, I’d never stop thanking you.But what I’d spend it on?$500,000 for a house, first of all.Something similar to this would do:Then we can have a safe place to live, without having to worry about rent!Second of all, I’d put some money in the bank.Let’s say, about $250,000.$50,000 for my uncle, he recently moved to Europe and needs about that much to start his own business.$50,000 would be used for investing, like stocks and such. I want to learn how to make money and not have to rely on the free $1 million all my life.$25,000 is for my entertainment (gaming PC, videogames, lots and lots of pizza, a samurai sword, a pair of awesome headphones, and a few pairs of Nike’s should do).I’d get something like this.$25,000 to a charity of my choice.And the remaining $100,000 is for my parents.They can do whatever they want with it.I think they deserve a hundred grand, they’ve worked hard all of their lives.
Can one person live off of 12 grand per year?
Depends on your definition of "living".
Living in the Philippines?
Well living with relatives is one way to reduce your expenses. But trust me what you save in rent you spend in other areas helping to take care of the family. The culture here is a world apart from stateside living. Besides the custom of sharing just about everything, you will be viewed as the rich American and I seriously doubt you'll ever change that. If your lucky enough that your family is middle to upper class here which is a very small persentage their needs will be few if any at all. If your family is among the vast majority that are just scraping by you will have a bunch of diffucult choices to make. Give too much your laughed at for being such a fool with your money. Don't give enough and your kuriput (cheapskate). Allot will depend on where you are living . Obviously your money will not go as far in the big cities of cebu or manilla as it woul;d in the smaller ones like Iloilo or Bacolod. It will go the farthest out in the countryside. You lifestyle will dictate how far it goes and how much is needed. How many western ammenties are needed ? Airconditioning, Microwave ovens etc. use allot of electricity here and it's not cheap. Will you buy a private car and hire a driver or drive yourself ? Would a Jeepney be good enough to get around or do you want a taxi ? Local food or the expensive imported american food ? How often and where do you want to eat out ? BBQ place, Mc' Donalds or a seafood resturant ? I think you get the picture. Some of us living here have said they only have a budget of P20,000 a month and are doing fine and are happy. Some in Manilla say $4,000 ( P160,000) is not enough. Most will agree that $1,000 is more than enough for a month to live comfortably.
How much money should I bring to the Philippines for a week?
Going to the Philippines for a week. Staying in Makati, hotel & breakfast each day are already paid for. I'm not big into shopping, but want to pick up some fun gifts for friends and relatives. How much cash should I expect to spend? I'm not planning on eating at fancy restaurants every day.