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I live in Washington State. I received a large, one-time monetary gift from my parents (>>$15k) who live in Pennsylvania.

My question is to ask if Pennsylvania taxes the giver of funds. Both parents are living. This gift is not inheritance.

I checked with my (WA) accountant about federal income and (WA) state taxation. She does not know about Pennsylvania law, but was able to answer my questions about federal tax code.

My question is specifically about Pennsylvania tax code, and about if the giver of funds owes taxes to the state of Pennsylvania for the amount of the gift. Thanks!

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I don't know PA tax law, but The Balance has this State Tax Chart that indicates PA does not have gift tax. No other searches for PA gift tax showed anything to the contrary, so I'm inclined to believe the chart is accurate.

According to their chart the only states that do have gift tax are Connecticut and Minnesota.

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I took a look at the State of Pennsylvania website:

Does Pennsylvania have a gift tax?

Answer ID 378 | Published 12/03/2002 12:15 AM | Updated 05/06/2022 11:55 AM Does Pennsylvania have a gift tax? Pennsylvania does not tax gifts made from detached or disinterested generosity. However, transfers of cash or property in payment for services, or as an inducement to perform services, are PA-taxable compensation and therefore subject to the personal income tax.

From your question:

I live in Washington State. I received a large, one-time monetary gift from my parents (>>$15k) who live in Pennsylvania.

If the gift was from both parents the limit is doubled before they have to pay Federal gift tax. Also in 2022 the limit changed.

According the the FAQ from the IRS:

How many annual exclusions are available?

The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift. The annual exclusion for 2014, 2015, 2016 and 2017 is $14,000. For 2018, 2019, 2020 and 2021, the annual exclusion is $15,000. For 2022, the annual exclusion is $16,000.

What if my spouse and I want to give away property that we own together?

You are each entitled to the annual exclusion amount on the gift. Together, you can give $22,000 to each donee (2002-2005) or $24,000 (2006-2008), $26,000 (2009-2012) and $28,000 on or after January 1, 2013 (including 2014, 2015, 2016 and 2017). In 2018, 2019, 2020 and 2021, the total for you and your spouse is $30,000. In 2022, the total for you and your spouse is $32,000.

That quote means that for 2022 the limit is now $16,000 or $32,000 an increase of $1000/$2000.

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  • Sorry, I just want to be clear that I'm not asking about federal taxation. My question is strictly about Pennsylvania tax code. Aug 10 at 2:04
  • This is also complicated by the fact that the federal tax portion of your answer may not be correct, if the gift was given and declared as an offset towards future inheritance. You should remove the federal tax portion of your answer entirely. Aug 10 at 2:34

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