In PA what is the total amount one can gift per year?

Question

I thought the amount was $12,000 to every individual. Can a husband and wife both gift? Example, father and mother each gift $12,000 to four kids in one year. Can the total of $96,000 be deducted from their taxes as gifts?

Answer 1

yes, a person can give $12,000 to each individual. a husband and wife can give $24,000 to an individual.

HOWEVER, these amounts are NOT tax deductions. a husband and wife would separately file Form 709, Gift Tax Return, although there will be no tax due.

The individuals that receive the money do not have to report it as income.

Answer 2

Each individual can gift $12,000 annually to as many individuals as they wish without incurring an obligation to report the gifts to the IRS. Therefore, yes, a husband and wife can both gift.

Gifts are not tax deductible.

Answer 3

I don't know of a state-specific gift tax in PA, but by federal rules and for federal gift tax, yes, husband and wife could gift $12,000 to each of four kids each year, for a total of $96,000 in gifts, without filing a gift tax return or being liable for a gift tax.

What you're missing here is that gifts you give are NOT deducible on your tax return. They aren't income to the recipient either, and don't have to be reported. But you can't deduct them.