Annual Gift Exclusion Overview ($18,000 / Recipient)
- Annual Per-Recipient Exclusion: You can give up to $18,000 per year per recipient (or $36,000 for married couples splitting gifts) without needing to file a gift tax return.
- Form 709 Filing: Gifts exceeding $18,000 per recipient must be reported on IRS Form 709, but no out-of-pocket tax is owed until your total lifetime gifts exceed the lifetime estate exemption ($13.61 Million+).
Gift Tax Reporting Table ($45,000 Total Gift)
| Number of Recipients | Total Gift Amount | Total Annual Exclusion | Reportable Gift (Form 709) | Out-of-Pocket Tax Owed |
|---|---|---|---|---|
| 1 Recipient | $45,000 | $18,000 | $27,000 (Reported) | $0.00 (Reduced Lifetime Cap) |
| 2 Recipients ($22.5k ea) | $45,000 | $36,000 ($18k × 2) | $9,000 (Reported) | $0.00 |
| 3 Recipients ($15k ea) | $45,000 | $54,000 ($18k × 3) | $0.00 (No Filing Needed) | $0.00 |
Frequently Asked Questions
Who pays the gift tax—the giver or the receiver?
The giver (donor) is responsible for filing gift tax returns and paying any applicable taxes. The recipient receives gifts tax-free.