$16,000 Annual Gift Tax Exclusion: Here's What You Need to Know | Rob.CPA

Описание: In this video, I walk through the basic rules around gift tax rules.
For the 2022 tax year, the annual exclusion limit for recipients is $16,000. So if you give someone $16,000 or less, the amount received by the recipient is not taxable, but you as the giver, cannot deduct this amount on your tax return.
If you’re married, the annual exclusion in 2022 is $32,000.

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If you gift over the annual exclusion of $16,000, then you will need to file a Gift Tax return, FORM 709. You may not have to pay tax, but you will need to file the form. The form is used to notify the IRS of amounts gift over the annual exclusion.

For married couples, that amount of annual exclusion is $32,000.
For the 2023 tax year, the annual exclusion is $17,000 per recipient.

We see a lot of our clients use this gift tax rule to provide gifts to their children. For example, contributing to their children’s 529 plan or contributing to their grandchild’s 529 plan.

Remember, the annual exclusion in 2022 of $16,000 is per recipient. So, I could gift $15,000 to one person, then $15,000 to another person, then $15,000 to another person, all in 2022 and still follow the rules.

In 2023, everyone’s lifetime exclusion is $11,920,000. BEWARE, this amount may decrease in 2026 as some tax laws plan to expire that year, this being one of them.

Knowing how the gift tax rules work, you can think about future planning strategies.

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Rob CPA channel was created with a mission to provide viewers with accurate content so they can be proactive in their tax planning strategies and build financial wealth. The video topics I selected reflect real-world issues that I’ve seen our clients experience relating to their personal tax returns, retirement plans, and accounting.

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