Nine Grinchy Tax Myths About Gifts This Holiday Season (1)

‘Tis the season for making—and receiving—gifts. Whether you’re delivering sweaters and socks or hoping to see a sizable check in your stocking, it’s a good idea to understand how gifts can affect your taxes this holiday season. Unfortunately, there’s quite a bit of misinformation available. Here’s a look at some of the myths you might have heard about making personal gifts.

(If you’re looking for information about bonuses and employment-related gifts, check out this previous article.)

1. Only rich people have to worry about the tax consequences of gifts. There’s a considerable debate about what “rich” means, but understanding ...