Disqualified due to gifts exceeding $10,000?

[TaxPhd]

Originally Posted by BLandHF

Interesting, it's worth appealing. Good luck!

There is a federal limit of 16k in gifts per year - meaning you were obligated to report the gifts on your taxes if the amount was over 16k.

Um, no. There isn’t a gift limit, there is a gift tax exclusion limit. Very different. And it applies to the giver of the gift, not the recipient. The recipient of the gift in excess of the exclusion amount doesn’t include it on their taxes. Rather, it creates a potentially taxable event for the giver.

[krs2]

Thank you everyone for your help. I spoke with the marketing agent and it sounds like someone made a mistake and referenced the old 2018 Marketing Handbook that has a rule about $10k gifts. So good news, we were un-disqualified. I hope this thread is useful in case someone else runs into this issue.

[WildAboutHarry]

Originally Posted by krs2

Thank you everyone for your help. I spoke with the marketing agent and it sounds like someone made a mistake and referenced the old 2018 Marketing Handbook that has a rule about $10k gifts. So good news, we were un-disqualified. I hope this thread is useful in case someone else runs into this issue.

I am happy to read this. Even so, you may wish to review the section on ‘appeals’ in the Handbook online. As I recall, it begins on page 33. You can also view the section on Income and Assets.

[randomperson2]

Good self-advocacy, krs2! And thanks for making note of it for future people who might run into a similarly dimwitted agent.