[ID: Digital illustration of a red dragon surrounded by their colorful hoard of books. A worn, blue scarf wraps around their neck, and a pair of gold glasses sits on their snout, held in place by a gold chain. The dragon’s lair resembles a huge, airy library with multiple levels of bookcases, tall mountains of books, and floor-to-ceiling windows revealing open sky. Decorative gold chains drape across the space. The dragon smiles as it holds a small book in its mouth, stretching to offer it to a distant human standing atop a book tower. End ID.]
1 penny below reporting limit for the IRS… I see what you did there
(Don’t give me $599.99)
That’s not the right IRS rule.
$599.99 is the amount below which a business does not need to issue a 1099 to a contractor who provides business services. The contractor still needs to report the income on their taxes.
The correct number for the IRS rule for money that is gifted rather than received in a business transaction is $13999.99–more than that, and the recipient has to pay tax on the gift and report it to the IRS. Less than that, and there’s no taxation or reporting requirement.
If we’re choosing amounts on the basis of IRS limits, give these people $13,999.99.
Go. Do it.
Reblog if it’s ok for people to give you $13,999.99
