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US Canada tax question

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Roostertail
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US Canada tax question  Reply with quote  

This last year my wife did some work for her dad on the internet and in reality she was probably overpaid for what she was doing. In other words it is just a way for him to help us out. She and her dad are Canadian and she has her green card and is living in the states with me. We received about 7,000 in 2012 for the work and I was just wondering what is the best way to go about this tax wise. Could it be called a tax free gift? Thanks for any advice!
Post Sat Feb 02, 2013 11:34 pm
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coaster
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Here in the US, it's up to the giver to elect gift status, not the recipient, and if work was done in exchange for it, I don't think it can be called a gift. You might want to approach him on the matter. If he has no reason of his own to call it compensation or payment in exchange for services rendered then perhaps it being in the family she could call her work having been done gratis and his payment a gift. Obviously if a W-2 was filed it's too late. I have no idea of the Canadian angle on the question.

~Tim~
Post Sun Feb 03, 2013 7:35 am
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