What is the gift tax limit for 2023?

The gift tax limit (or annual gift tax exclusion) for 2023 is $17,000 per recipient. 1 For 2024, the limit has been adjusted for inflation and will rise to $18,000. 2 You’ll have to report any gifts you give above that amount to the IRS on your tax return (using Form 709). There are some exceptions to the rule, but I’ll get to those in a bit.

What is the gift tax exemption for 2024?

For 2024, the annual gift tax exclusion is $18,000, meaning a person can give up to $18,000 to as many people as he or she wants without having to pay any taxes on the gifts. For example, a man could give $18,000 to each of his 10 grandchildren this year with no gift tax implications. For context, the 2023 gift tax exemption is $17,000.

Do you have to file a gift tax return 2023?

Like I mentioned before, the annual exclusion limit (the cap on tax-free gifts) is $17,000 per person per year for 2023 and $18,000 for 2024. So even if you do give like crazy, you won’t have to file a gift tax return unless you go over that limit. Don’t settle for tax software with hidden fees or agendas.