Financial Information
If my cousin pays my credit card bill directly to help me reduce debt, do I have to pay income tax on this?
Question : If my cousin pays my credit card bill directly to help me reduce debt, do I have to pay income tax on this?
He will post payment directly to the credit card company.
reduce my debt
Best answer:
Answer by Grrrr…
why would you pay income tax on a paid bill? he’s not paying you, so it’s not income.
You don’t say what country, but in U.S. there are no reporting requirements for a gift from/to any person unless it is over $ 12,000/year. If more than that, it has to be reported, but no tax is due unless it exceeds a $ 1 million lifetime exclusion. If there is any tax due, it is due from the gift giver.
For other countries, check with whoever collects income tax.