What if I give more than the gift tax limit?

If you give more than the annual gift tax limit, you may have to file a gift tax return, but this does not necessarily mean that you'll owe taxes on the gift. The 2024 annual gift tax exclusion is $18,000. Sending a $20 bill with a graduation card? No need to sweat the federal gift tax.

How much tax do you pay on a gift?

Taxpayers typically only pay gift tax on the amounts that exceed the allotted lifetime exclusion, which was $12.92 million in 2023 and is $13.61 million in 2024. Gift tax rates range from 18% to 40%. Of course, there are exceptions and special rules for calculating the tax, so check the instructions for IRS Form 709 for all the details

How much money can you give a married person?

That means you can give another person up to $17,000 in cash or an asset worth up to $17,000 this year and not worry about ever owing tax. The limit is per recipient, so you may give a married couple up to $34,000 or give five grandchildren $17,000 each and never be taxed on the gifts. Gift givers generally pay the gift tax, not gift recipients.