According to the Federal government, Gift tax is a federal tax on any property given out to someone without expectation of the opposite party to pay a gift value back. As per IRS, the obligation to file any form related to gifting returns is removed with any person gifting up to $19,000 per recipient in the year of 2025.
One is allowed to give over $19,000 per recipient to as many people as they want in the year 2025 without being taxed. So for example if you intend to allocate whatever gift you want to to the following people:
The lifetime exemption covers the combined value of taxable gifts made during your lifetime and your estate at death. For 2025, the lifetime exemption is $13.99 million. This allows high-net-worth individuals to transfer substantial wealth without incurring gift or estate taxes.
Married couples can effectively double their gifting capacity using a strategy called gift-splitting. Here’s how it works:
Gifting to a non-citizen spouse has a higher annual exclusion to account for differing tax rules. For 2025, this exclusion is $190,000. This means you can transfer up to $190,000 to a non-citizen spouse without incurring gift tax.
If you gift more than $19,000 to a single individual in 2025, you must file Form 709. Here’s when filing is required:
