Demystifying Gift Tax Your Guide to Tax-Efficient Generosity

A common misconception is that the recipient of a gift has to pay income tax on the gift. Gifts are generally income-tax free to the recipient ... The gift tax is a federal tax set by the Internal Revenue Service (IRS). For tax year 2025, any gifts that exceed the lifetime gift tax exclusion limit of ... In order to avoid reporting for small or nominal sized gifts, they put in place an Annual Gift Tax Exclusion: an amount that can be given each ... However, gifts between spouses are unlimited, meaning they don't require a gift tax return to the IRS. How Does the Lifetime Exclusion Work? The lifetime gift ... How the gift tax "exclusion" works ... Currently, you can give any number of people up to $18,000 each in a single year without incurring a taxable gift ($36,000 ... The IRS recently announced increases in gift and estate tax exemptions for 2025. The annual gift tax exclusion will rise to $19,000 per recipient, up $1,000 ... Annual Exclusion for Gifts. The annual exclusion from gift tax (i.e. the amount that may be gifted annually to individuals without tax ... How many annual exclusions are available? (updated Oct. 28, 2024) ; 2018 through 2021, $15,000 ; 2022. $16,000 ; 2023, $17,000 ; 2024, $18,000. Depending on how much money you are gifting to your adult child, you may have to pay a federal gift tax. The gift tax applies to gifts in excess of $15,000 ... The lifetime gift/estate tax exemption was $5.49 million in 2017. The lifetime gift/estate tax exemption was $11.18 million in 2018. The lifetime gift/estate ...