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
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.