Gift tax is a federal tax that can apply when someone gives money or property to another person without receiving something of equal value in return.
✅ The giver (not the recipient) is usually responsible for any gift tax and related filing.
🔑 Key Points
📅 Annual Exclusion
- In 2025, a person can give up to $18,000 per recipient per year
- Gifts at or below this amount:
- ✅ Are not taxable
- ✅ Do not require a gift tax return
🧮 Lifetime Exemption
- Gifts over the annual exclusion may reduce the lifetime gift and estate tax exemption
- The 2025 lifetime exemption is $13.61 million
- ✅ Most taxpayers will not owe gift tax, even when filing Form 709
📝 Required Form
- If a gift exceeds the annual exclusion, the giver must file:
- Form 709 – United States Gift (and Generation‑Skipping Transfer) Tax Return
📦 Common Examples of Gifts
- Cash or checks
- Real estate
- Stocks or bonds
- Forgiven loans
- Tuition or medical expenses paid directly to the institution
✅ These are generally exempt and not reportable gifts
⚠️ Important Notes
- Gift tax rules apply per recipient, not per year total
- Splitting gifts between spouses may require gift‑splitting rules
- Receiving a gift is not taxable income to the recipient
🚫 Program Limitation
We do not support the preparation or filing of Form 709.