A: We’ve crafted a bullet point list of everything you need to know!
- In 2022, you can gift up to $16,000 ($15,000 in 2021) to any one person in a year, generally without having to file a gift tax return to disclose the gift.
- The annual exclusion is per recipient, and it is NOT the total of all your gifts (that means that you can give $16,000 to your cousin, another $16,000 to a friend, another $16,000 to a neighbor, and so on all in the same year without having to file a gift tax return).
- The annual exclusion also is per person, which means that if you’re married, you and your spouse could give away a combined $32,000 a year to whomever without having to file a gift tax return.
- Gifts between spouses are unlimited and generally don’t trigger a gift tax return.
- Gifts to nonprofits are charitable donations, not gifts.
- The person receiving the gift usually doesn’t need to report the gift.