If you provide too much money as a gift to someone during a year then you may have to file a gift tax return with the IRS. The gift tax return is known as Form 709. If the total gifts provided to one person during a year is equal to or less than the annual exclusion amount, then you do not have to file a gift tax return with the IRS.
During the period of 2018 through 2021 the annual exclusion was $15,000.00. The annual exclusion has increased in 2022. The new annual exclusion is now $16,000.00.
If a person provides gifts to another individual that total no more than $16,000.00 in one year, then a gift tax return will not have to be filed with the IRS. On the other hand, if that person were to provide gifts worth more than $16,000.00 to one person in one year then a gift tax return would have to be filed with the IRS.
The annual exclusion is doubled for a married couple. Therefore, the annual exclusion for a married couple is $32,000.00.
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