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sonnyfab t1_j2f5lss wrote

It sounds more like a tip than a gift. Your husband performed a service for Mrs Someone and received a payment from her because of that service.

"Section 102 of the tax code instructs us that “Gross income does not include the value of property acquired by gift, bequest, devise or inheritance.” It helpfully clarifies that this exception to the income tax does not apply to “any amount transferred by or for an employer to, or for the benefit of, an employee.”

https://www.palisadeshudson.com/2013/09/if-gifts-are-not-income-why-tax-gratuities/

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[deleted] OP t1_j2f6484 wrote

[deleted]

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sonnyfab t1_j2f6caz wrote

When you tip a waitress, she's not suddenly your employee. But the tip is still income, not a gift from you to the waitress. The tip is considered a "transfer for the benefit of an employee" from the quote in my previous reply.

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