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QUESTION:
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Can an employer pay you with gifts that are not taxable as income? | I retired last year to help a friend of mine who had a stroke. He pays me a small monthly salary he calls a
gift. I receive social security and the extra income
is very helpful and actually makes it possible for me
to cover all my bills. I do live in his house with him
so thats a help to me and to him also as it avoids hiring more help. Do I have to pay taxes on this payment of gifts? |  | asked by daphar1, 11/6/2008 |
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Categories:
Retired, Budgeting, Health and Health Care, Tax Planning, Social Security, Procedures, Retirement Income, Work and Retirement, Friends, Relationships
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| ANSWERS: | | Answered by: Editorial, 11/06/08
Overall Rating:  Be the first to rate it. | According to this article: http://www.smartmoney.com/personal-finance/taxes/when-to-file-gift-tax-forms-9555/
... If you are paid less than $12,000 a year, then you probably do not need to file it with the IRS.
Please review the article for more details.
It would also be prudent for you to consider your plans for when this arrangement ends. What will you do without the free rent and extra income?
I wish you all the best.
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