Can I give each of my children a gift of money each year that is tax exempt?

Question

THEY ARE ALL MARRIED

Answer 1

Yes you can. You can give each child, spouse, and grandchild up to $12,000 this year withour paying gift tax. The gift will be deducted from your $1 million estate tax exclusion though.

Answer 2

Bear in mind that any tax liability is to the donor, not the recipient. Regardless of the size of the gift, the recipient NEVER pays any tax on it. (And if you are asking if you can take a deduction from your income for gifts, the answer is no.)

As the donor you may give up to $12,000 per year per recipient without any tax consequences or filing requirements. You may give to an unlimited number of recipients each year so you could give $12,000 per year to each of your children and $12,000 per year to each of their spouses and even their children and never have to file a Gift Tax return or pay any tax.

If you give more than $12,000 to any single recipient in any year you must file a Gift Tax return. Anything above the annual $12,000 exclusion will then be applied to your lifetime exclusion of $1,000,000. That lifetime exclusion also reduces your Estate Tax exemption dollar for dollar so it may impact the taxability of your estate when you pass.

Once your lifetime exclusion is exhausted, any gifts that exceed $12,000 to any one recipient in any year will start to attract gift taxes to YOU. The rates start at 18% and rise to 46% depending upon the total size of the taxable gifts that you give.

Answer 3

You can give each child up to $12,000 a year, and you won't have to file a gift tax return for it.

You can give them any amount and they won't have to pay tax for getting it, but over $12K you'd have to file the gift tax return, although that doesn't mean you'd have to pay a gift tax.

You can't deduct gifts that you give, though, if that's what you are asking. The gift amount is tax exempt to the person receiving it, but there is no exemption or deduction for the giver.

Answer 4

I believe the gift amount to anyone is up to $12000 per year with no tax consequences. The lifetime amount is $1,000,000. You can actually give 1,000,000 with no tzax liability in one year you just have to fill out some IRS forms that apply the allowed credit which covers the 1st million

Answer 5

Your appropriate wager is to take 3K and positioned it in to an ISA and get different family to do an identical. That makes that tax loose. Your father provides you as much as he likes, you will basically be taxed if he dies interior of 7 years of providing you with the money. yet pay attention!... if your given a huge lump sum and you make investments it properly, then the pastime you earn could take you over your tax threshold and positioned you interior the better fee.. i might continuously advise speaking to a financial consultant yet do it via a financial company or development Society as IFA's (Inderpendant financial Advisors) will take a decrease! good success!