Done

[Boo Boo]

actually boo boo knows more than you do. just havent recieved a gift in a long time. i work for my money

using a cc as a gift payment is taxable income. as it is not a asset they own. but hey its his ass and parents on the line. nothing like a audit with penalty fees and back taxes.

 

[tw1164]

Just get your unemployment benefits, its why you have it.

 

[SSSnail]

Originally posted by: mugs

Originally posted by: compman25
Are you too proud to flip burgers but not to proud to leech off your parents? Is that right?

Flipping burgers will net him about $200 a week. If he really needs $3000 a month to live on (which is believable if he lives in a nice area of NJ), $200 a week will barely make a dent, and it will take time away from his search for a good job. I agree that it's a bad move since his parents apparently need to borrow the money to lend to him, but if they're OK with making piss-poor financial decisions, have at it.

OP - what about unemployment benefits? This is exactly the type of situation that it is intended for... I believe it pays about 60% of what you made on average for the past year? They don't take taxes out, but you WILL have to pay the taxes on it at the end of the year.

Actually, unemployment only pay up to $1500 max. But I think the OP is leaving something out, he wouldn't be needing $3000/mo on broke (keep in mind this is NET, not gross). So even if he made that before, he should have learned to tighten down.

 

[JEDIYoda]

hey dude been there and done that....
hang in there keep your head up high and be thankful you have parents who care and are in a position to help!!

Good Luck!! -- Peace!!

 

[mugs]

Originally posted by: SSSnail

Originally posted by: mugs

Originally posted by: compman25
Are you too proud to flip burgers but not to proud to leech off your parents? Is that right?

Flipping burgers will net him about $200 a week. If he really needs $3000 a month to live on (which is believable if he lives in a nice area of NJ), $200 a week will barely make a dent, and it will take time away from his search for a good job. I agree that it's a bad move since his parents apparently need to borrow the money to lend to him, but if they're OK with making piss-poor financial decisions, have at it.

OP - what about unemployment benefits? This is exactly the type of situation that it is intended for... I believe it pays about 60% of what you made on average for the past year? They don't take taxes out, but you WILL have to pay the taxes on it at the end of the year.

Actually, unemployment only pay up to $1500 max. But I think the OP is leaving something out, he wouldn't be needing $3000/mo on broke (keep in mind this is NET, not gross). So even if he made that before, he should have learned to tighten down.

NJ is $536 per week max (http://www.state.nj.us/labor/ui/figbenamt.html)

 

[bonkers325]

if its 0% APR, then just ask ur parents to sign u up for a card under their name. u will be able to use the card, and it probably wont count as income and such.

also, do get a job. aim for a temporary position or part time job while u look for a better job. you said u were laid off - u can get unemployment, so u might want to try that.

i had a friend who was jobless out of college and refused to get a shitty job due to his pride. what an idiot. i footed one month of rent for him because i thought i could trust him, but he couldnt make a sound financial decision even if his life depended on it (and his life DID depend on it). the second he got a job, he bought a car, computer, more dogs, and got a free-loading girlfriend to boot. he practically lives paycheck-to-paycheck. if he had gotten a job (about 5-6 months of paychecks), he would've been in much better shape! --- the moral of the story is, dont let your pride or whatever get in the way of u finding a job. a temporary job is a good option if u are currently unemployed and seeking 'the right opportunity'. you need the cash, obviously, so just clam up and get temp work!

 

[sao123]

Originally posted by: everydae
Hello,

At age 25, I unfortunately laid-off from my first full-time job in my life. So, my parents want to send me some money to support my expense for next few months during job search. But since they are out of cash right now as well, they want to use their credit card and Google checkout. Not a huge sum of money, probably $ 3000 a month at max? I know GCO prohibits cash advance, but I hope they (and you) understand the situation.

Anyway, will doing this make both of us in trouble, especially from IRS? I know Gift is not taxable, and I can assume tax treatment for this will be gift since we have a valid background. I live in NJ, and my parents live in CA, so state tax won't be issue I believe.

We are just planning this, so we haven't done any transaction yet. And I need some experienced comments about this. I saw few other threads from ChubbyWallet that IRS can chase you about this, so I am worried and don't want to hurt my parents in any way.

Any comment will be appreciated, thanks in advance!

something is fishy here... your typing resembles this email I get from this nigerian guy twice a day. Are you trying to launder money?

 

[Special K]

Originally posted by: pontifex

Originally posted by: DainBramaged

Originally posted by: pontifex
$3k a month?!?!?! I only make about half that and I work full time!

haha...you must have a shitty job :laugh:

yeah, pretty much. i'm one of the few people here that makes less than $100k a year, i don't have a gf at all, much less one that is a supermodel, and I drive a Saturn.

I thought you were going back to school to get a degree because you hated your job? What is the status of that? I remember you making like 100 threads about it.

 

[FoBoT]

yeah, they should just make you an authorized user on their account and have a card sent to you. then you use the card/account for your expenses. it also makes it easy to track how much you owe them/have to pay them back after you get a job

 

[oogabooga]

Don't you have to pay to receive money via google checkout?

The best way would be i would think to get a check/deposit into the account.
you should also get any job you can in the meantime, every little bit will help.

 

[KDKPSJ]

..

 

[CPA]

Originally posted by: Canun
A gift is taxable when the amount is over $11k a year. So if you recieve support for more than 3 months, you would need to fill out a gift return. Unless your parents want to make it a business and charge you interest. What about unemployment, do you qualify? As far as the IRS goes, it gets in a grey area. I'm not an accountant, just work with tax returns year round, but I'd think it would almost be considered other income.

You work with tax returns and tell him that he needs to fill out a gift return?

 

[CPA]

Please have your parents seek tax advice as it pertains to "Gifting" because there is a lot of misinformation in this thread - including your original post.

 

[Mxylplyx]

I did construction for $8/hr under the table for a few months after getting laid off from my first professional programming job. Granted I still lived with my parents, but your $3K/mo handout seems pretty extreme and unnecessary.

 

[dullard]

Originally posted by: CPA
Please have your parents seek tax advice as it pertains to "Gifting" because there is a lot of misinformation in this thread - including your original post.

Exactly. This thread is quite messed up. The glimmer of truth in it is burried too deep to ever see.

Facts:
1) Yes, gifts can be taxed. But you wouldn't be taxed on the gift, your parents will be taxed for giving the gift. That is a subtle difference. Your parents are taking the risk, not you. They should do as CPA said and consult tax advice.

2) Each of your parents can give you $12,000 per year without paying a gift tax. IRS's own website. Thus, combined they can give you $24,000 a year. That works out to be $2k a month if you are in this situation for an entire calendar year. Since we are near the end of a year, they can give you more than that each month while still in 2007.

3) To avoid all of this, you can get a loan from your parents. But the paperwork must be done properly, and they may be taxed on the interest that you pay them.

My questions to you:
1) Yes, it is ok for parents to help their kids. This is true regardless of your ethnic origins. But, have you considered if that is the best thing for everyone involved? What happens if your parents get into trouble and want their money back? Will this destroy your relationship with them over saving a few dollars in interest on another loan?

2) Where are your savings? Why don't you pay for this.

3) Can you sell the car?

4) Can you get a loan in any other way?

 

[pstylesss]

Originally posted by: Boo Boo
if they use a cc to give you money it is no longer a gift. it is incoime which is taxable.

the 10000 gift option by the irs is for assests you have to give family so if you do not have the cash asset it is not a gift

start selling your blood and other fluid at the university

and apply for state welfare. unemployment and food stamps.

dont be a leech

flip a burger

LOL

 

[CPA]

Originally posted by: dullard

Originally posted by: CPA
Please have your parents seek tax advice as it pertains to "Gifting" because there is a lot of misinformation in this thread - including your original post.

Exactly. This thread is quite messed up. The glimmer of truth in it is burried too deep to ever see.

Facts:
1) Yes, gifts can be taxed. But you wouldn't be taxed on the gift, your parents will be taxed for giving the gift. That is a subtle difference. Your parents are taking the risk, not you. They should do as CPA said and consult tax advice.

2) Each of your parents can give you $12,000 per year without paying a gift tax. IRS's own website. Thus, combined they can give you $24,000 a year. That works out to be $2k a month if you are in this situation for an entire calendar year. Since we are near the end of a year, they can give you more than that each month while still in 2007.

3) To avoid all of this, you can get a loan from your parents. But the paperwork must be done properly, and they may be taxed on the interest that you pay them.

My questions to you:
1) Yes, it is ok for parents to help their kids. This is true regardless of your ethnic origins. But, have you considered if that is the best thing for everyone involved? What happens if your parents get into trouble and want their money back? Will this destroy your relationship with them over saving a few dollars in interest on another loan?

2) Where are your savings? Why don't you pay for this.

3) Can you sell the car?

4) Can you get a loan in any other way?

This is mostly point on, except that your parents can also using their Lifetime Unified Credit to even allow them to gift you even further support without having to pay taxes. They will have to file form 709, but won't have to pay anything until they meet the credit ceiling. The unified credit is roughly $350k for 2006.

 

[AgaBoogaBoo]

Simple Solution: Ask them to have a CC sent to you that you can put things on.

Good Solution: Take out a loan yourself and apply for unemployment

 

[Diz2K2]

Originally posted by: ZeroIQ

Originally posted by: Boo Boo
if they use a cc to give you money it is no longer a gift. it is incoime which is taxable.

the 10000 gift option by the irs is for assests you have to give family so if you do not have the cash asset it is not a gift

start selling your blood and other fluid at the university

and apply for state welfare. unemployment and food stamps.

dont be a leech

flip a burger

LOL

Nice

 

[ViviTheMage]

damn dude, take out your own loan. 3000$?! what did you go to yale for 15 years?

My living expenses are only 1200$ a month, car payment, loans for school, food, mortgage, insurance, cell phone, utilities....

thats for me AND the gf.

 

[D1gger]

Originally posted by: everydae
Well, thanks for all the comments.

First of all, I set $ 3k just for quick reference. Yes, my cost of living is much lower even after rent and auto loan. But my parents don't care much about using their credit card, I thought that would be better way to go, but maybe not.

My parents also want me to take some time, because, well my last job, which was Korean company, was so tough to the employees. For last six months or so, I had to work overtime without extra pay, no paid sick or personal day, sometimes working during weekend, and so on. Looks like really bad employer, but that's the way Korean companies do in NJ area. My parents know how much stress I experienced from this job, so they want me not to hurry and take this time as a chance to relax.

Well, in Korean culture, support from parents is obvious. Even if you are married and have three kids, you are still ok to have no job and live with parents' money. That's the culture, so I thought I'd bring this much conflict from the others. (Cuz I thought this would be normal)

Anyway, thanks for your comments. I will just ask them to write me a check, meanwhile, I think I should report unemployment benefit.

I'm sorry, but that describes just about every job I have ever had. The salaried positions I had in the past were not based on how many hours I worked, but were performance based. I had to work as many hours as it took to get the job done.

I now work for myself, and seem to work even more hours, but the benefits are definitely real.

 

[sygyzy]

Originally posted by: everydae
Not like my last job, which seriously underpaid me.

How much did your last job pay you? Was it NEGATIVE money because if it wasn't, being unemployed means you are making less.

 

[hanoverphist]

Originally posted by: Boo Boo
if they use a cc to give you money it is no longer a gift. it is incoime which is taxable.

the 10000 gift option by the irs is for assests you have to give family so if you do not have the cash asset it is not a gift

start selling your blood and other fluid at the university

and apply for state welfare. unemployment and food stamps.

dont be a leech

flip a burger

kind of contrary wouldnt you say?

id say if youre unwilling to work at a temp place or something crappy but pays decent until you find a "real" job, having your parents set you up with a card on their account is the best way to go about it. if they are willing to give you 3k a month until you find a "real" job, this should be a small task for them.