If you are concerned about owing back taxes from all of those birthday gifts that you have given over the years, we have some good news for you. There are some gift tax exclusions that you can utilize to give tax-free gifts. One of them is the annual gift tax exclusion. Each calendar year, you can give up to $14,000 to an unlimited number of gift recipients, and the gift tax would not be applicable on the transfers. To be clear, there is no limit on the total amount that you can give tax-free, as long as you don’t give more than $14,000 to any one person.
Topics covered in this report include:
- Annual Gift Tax Exclusion
- Educational Gifts
- Medical Expenses
- Unified Lifetime Gift and Estate Tax Exclusion