Federal Gift Tax Exclusion

The Federal Gift Tax Exclusion allows individuals to give a certain amount of money or property to others each year without facing gift tax or needing to report it. As of 2023, this annual exclusion is $17,000 per recipient. This means you can gift up to $17,000 to any number of people annually without tax consequences. Gifts exceeding this amount may require filing a gift tax return and could count against your lifetime estate and gift tax exemption. The goal is to facilitate generosity while minimizing tax burdens on small gifts.