What is the maximum amount of money that a parent can give their children per year that is not taxable?

Answer 1

10,000

Answer 2

The annual exclusion was increased as of 1/1/06 to $12,000 per year per recipient. Married couples can pool their annual exclusions and give up to $24,000 per year per recipient (IRC Section 2513). In addition, direct tuition or medical payments are not treated as gifts under IRC Section 2503(e).

Even if the gift is "taxable" a person can make $1 million of taxable gifts during their lifetime without actually paying any gift tax. Please note that while the estate tax exemption is now $2 million, the gift tax exemption remains at $1 million.

Answer 3

Yes, the exclusion actually went up to 12,000 per gift, but if there are 2 parents and one child then that's 24,000.

Also, even after the $12,000 gift tax exclusion, there is the next $2,000,000 that is the amount of 'lifetime' gift and inheritance a person can pass on either as tax free gift or else as federally tax free inheritance.

Answer 4

It is true that this year it is $11,000 and that each parent can make the gift, so that it is $22,000. Also consider (if this is being used for college savings) that the government allows a one year gift of $55,000 per parent ($110,000) for a couple as long as the gift is pro-rated over five years in your annual tax filings (requires form 709).

Answer 5

under 16-$4500
over 16-$600
if you are talking about paying them do things for you. If it is just allowance it doesn't apply give them all you want. :o)

Answer 6

This year it is $11,000.And, actually each parent can make that gift. So, you could receive $22,000.

Answer 7

10k