HarriedParent
New Member
My 40 year old stepdaughter has no assets and no income. We are her entire support, and give her the maximum $12,000 each, each year to live on (total $24,000). We declare her as an adult dependent, and take the exemption.
She has her own medical insurance, but that never covers all the bills. If we are ever obligated to pay these for her, does that push us over the IRS gift limit? If so, what penalty is there to us or her? What is the penalty if we just increase her support (gift)?
She has her own medical insurance, but that never covers all the bills. If we are ever obligated to pay these for her, does that push us over the IRS gift limit? If so, what penalty is there to us or her? What is the penalty if we just increase her support (gift)?