Is a gift under 10000 dollars taxable income?

A "gift" is NEVER taxable, unless it can be considered compensation for services (as when an employer gives a "bonus"), or it can be considered a "prize".

Compensation for services is always taxable.

A "prize" is ALWAYS taxable. When Oprah Winfrey gave members of her audience automobiles, this was considered a "prize", not a "gift", as was the subsequent offer to pay their income taxes. However, that determination...of it it is a gift or something else....as I have seen by many questions here and elsewhere... is frequently, if not virtually always, wrongly answered by the recipent. In fact, both the Oprah car and the subsequent offer to pay the tax were wrongly defined by the "expert" staff and audience. (And no, the audience didn't have any idea that Oprah was going to give them each a car...etc.,)

A gift (or gifts) totaling more than $10,000 (indexed for inflation, $12,000 in 2007) to the same person in the same year MAY create a "gift tax" liability for the giver. It will certainly require the filing of an "Estate and Gift Tax Return" by the giver. But no actual tax liability is incurred until the lifetime total of all gifts exceeds the threshold amount, currently $2,000,000.

The Gift tax is not restricted to transactions between parents and children.

Although "a single taxpayer with three children can transfer a total of $36,000 to them every year free of federal gift taxes", a married couple could transfer twice that amount, since both the husband and the wife can separately give $12,000 each to each of their three children!