Q: If I were in a sugar baby/daddy relationship do I have to include any money he gives me on taxes?
There would be no sex but might be sexual or suggestive pictures and I wouldn’t be charging him for anything or asking him for money. I would only be accepting anything he decides to give me. If I do need to include it on taxes, what is the max amount I can accept from him before I legally need to include it on my taxes?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
In a sugar baby/daddy relationship, any money received should generally be reported as income on your taxes. The IRS requires you to report all income, regardless of the source. This includes gifts or allowances received from a sugar daddy, even if there's no formal agreement or explicit payment for services.
If the money is given as a gift, the giver may be responsible for gift taxes if the amount exceeds the annual exclusion limit, which is $17,000 for 2024. However, frequent and regular payments might be considered taxable income rather than gifts. It's important to keep detailed records of any money received to accurately report it.
There's no specific threshold for reporting if the money is considered income. Any amount received should be included on your tax return to avoid potential legal issues. Consulting with a tax professional can provide guidance tailored to your situation.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
