Family Exclusion Donation for 2025 vs 2024

[Sec2]

How much can give you donate to your family (adult) per year?

[xmasbaby0]

Gifts to family members are not "donations."   You cannot deduct anything for giving a gift to a family member.

Gifts given to family members, friends or other individuals are not deductible.   Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($18,000 per individual)  imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.

TurboTax does not support Form 709.  It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

[Sec2]

Thank you. Just as a followup, what happens if you give a family member 25K?

[xmasbaby0]

@Sec2 What "happens" if you give $25K from one individual to another is that you are supposed to file a Form 709.

[MayaD]

You'll have to file a gift tax return, Form 709. You will not have to pay any gift tax unless the total of all gifts you have made in your lifetime is more than $13.61 million in 2024 /$13.99 million in 2025, but they have to file the return. 

[Sec2]

Yes, I understand that, thank you. My question is, Is tax owed between the difference of the 18K and the 25K

(7K ) ? OR,

Is the 18K just a number or does it mean anything if you give the family member more?

Thanks again.

[RobertB4444]

The only thing that the 7K does is require you to report it.  If you give them 18K or less you don't have to report it at all.

@Sec2 

[xmasbaby0]

You will not owe tax-----the amount  you gave is applied against your lifetime gift allowance---please read the link provided to you more carefully.

[Sec2]

Thank you!