Annual Exclusion

The Annual Exclusion refers to a tax benefit in the United States that allows individuals to give a certain amount of money each year to others without incurring gift taxes. As of 2023, this amount is $17,000 per recipient. This means you can give gifts up to this limit to as many people as you like each year without needing to report it to the IRS or paying taxes on those gifts. This exclusion helps individuals transfer wealth or support their loved ones financially without facing tax consequences.