USA Will this be taxed?

[dwin5667]

Hello everyone, I have a quick question and please excuse me if this isn't the place to ask this.

My father-in-law (who is 75) just settled an on-site injury settlement from his old job. He gave my mother-in-law (who is 66) a portion of it. To my knowledge he gave her roughly 30k or maybe more. She is 66 years old and she still files taxes, so my question is will she need to pay taxes on the money he gave her?

Thank you

 

[BIG E]

The way you posted the facts, it appears that they are no longer married.
The money he gifts to her is not taxable income.
However, if he is not married to her, he should file a gift tax return to show that he gifted more
than the annual $ 15,000 exclusion.
Transfers between married spouses are not reportable for gift tax purposes.

 

[dwin5667]

Thank you for your reply BIG E!! And I am sorry if my post was very succinct. They are still married. One more question if I may, she wants to invest that money, would any earnings need to be filed on that money? Sorry again for any lack of information on my end.

 

[BIG E]

Yes - the earnings from the investments will still be taxable, unless it's from municipal bond interest.