Gifts received are not reported on a tax return, regardless of the amount received.
If your gift to a single individual is more than $17,000 in 2023 then you are required to report the gift given on an IRS Form 709. The form is not included with a tax return but filed separately. TurboTax does not support Form 709.
No gift taxes will be owed on the gift if the total of all gifts ever given is not over $12.92 million in 2023.
The withdrawal from the IRA may be taxable income. You will receive a Form 1099-R for the amount withdrawn. You enter the Form 1099-R on your federal tax return, Form 1040.
