Ask Terry Questions Tax free gift amount

Tax free gift amount

By Terry Savage on May 31, 2018 | Wild Card

Has the amount changed under the new tax laws as to how much is allowed to be given tax free? It was $14,000 per person per year. Thank you for your help.

Terry Says

Yes, after being stuck at $14,000 since 2013, starting in 2018 the annual gift tax exclusion amount is $15,000.  That means you can give $15,000 to any number of people without including it in your total lifetime estate and gift tax amount (now $10 million!).  The people who receive the gift do not have to pay taxes on it.  And you do not have to file a gift tax return — no matter how many $15,000 gifts you give this year!



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