Quote:
Originally Posted by BrianL99
I wouldn't put too much faith in TOTV financial advice you're getting
Gifts are generally considered taxable.
Lottery winners are not "taxed on the entire amount". Potential taxes are withheld, but the taxes are not immediately due & payable and there are a myriad of ways to reduce your tax liability.
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What I said was that the receiver of a gift is not taxed. There is a "unified gift and estate" tax that may be required to be paid by the giver or their estate, but not by the receiver of the gift. This is not income tax. In 2025, there is an annual gift tax exclusion of $19,000 per recipient for gifts. But, a gift tax is not owed until the lifetime exemption is exceeded. In 2025, the lifetime exemption is $13.61 million. So, if you give someone $20,000 in 2025, you need to file a gift tax form to notify the IRS that your lifetime exemption has decreased by $1,000, but neither you nor the recipient will owe any tax.