California gift tax laws or federal gift tax laws?

My parents are planning on giving me a lump sum of cash to travel after I graduate from college in December. I was wondering, would I have to pay any taxes on that amount of cash? They are going to give me roughly $10,000 – $15,000. Will they have to report this on their tax forms? Will I need to report these on mine? Will we both be taxed?

You will not owe any taxes on the gift. The recipient never pays tax. If your parents are giving you the gift jointly, they may give you up to $24,000 without having to file a Gift Tax form. Even if they had to file the form, they would not be taxed on the gift – they would just have to report it. Enjoy your trip!

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