In my work they have a Fund to help retirees and elderly employees with financial needs. I got help after my husband passed away, so I could help myself with some of his debts an funeral expenses. I don't itemize expenses, I use the standard deductions. Do I have to pay taxes to the Fed and State on this Financial help?
I will appreciate your information.
I've already tried...
Answers
Expert
First let me say how sorry I am for your loss.
I did a lot of research on this question, and could not find anything specific in the tax law to answer your question.
Unless the company is issuing a tax form, I would consider these monies a "gift", and therefore not taxable. If the "gift" was more than $13,000 it would be up to the company to file and pay taxes on their "gift". You might want to check with them to see if they will be reporting the monies on a 1099-MISC or if they are treating it as a gift.
If they are giving you a 1099-MISC, you will report the amount on Line 3 on your 1040, Line 21. If they are not, you would consider it a gift and therefore it would not be taxable to you.
I hope this helps. I do think it's best to check with them before continuing.
Thanks for writing.
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My name is Elizabeth Anne, and I love doing taxes! I have been employed with Liberty Tax Service for 5 tax seasons, specializing in small business and self-employed persons. Although with Liberty for only a few short years, my tax experience began in 1985. I am on your side, and work hard to make sure that you get every single deduction you are allowed by law. View Profile
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These sound like a gift. You would have no taxes due on the money recieved.
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