is gift from parent considered income
Tax Free Gifts From Parents. If you receive a gift from your parents, it will be tax free for you no matter how much the present is worth. However, your parents may have to pay a tax on the value of the gift if it is worth more than the annual exclusion that the Internal Revenue Service allows for gifts. Gift-tax rates are the same as income-tax rates. The major figure to remember for gift taxes is the annual exclusion, which was $13,000 as of 2012.