Hi @gcar455
Thank you for asking this question about gift tax. When it comes to gift tax, there are two key elements that come into play. The first is the $16,000 Annual Gift Tax Exclusion (Tax Year 2022). If you give someone less that $16,000 then it is excluded from your taxes. You are correct that you can split a gift between spouses and between recipients.
If you go over $16,000 then the second factor comes into play. A person is allowed to give away $12.06 million in assets or property over the course of their lifetime (tax Year 2022). So, even if you go over the annual $16,000 in a year it may still be excluded as long as you haven't exceeded the lifetime gift limit. If you exceed the $16,000 limit, it will be reported on your taxes, but another calculation will be applied to determine if you lifetime limit was exceeded.
I hope that answers your question about gift tax and reporting. Please feel free to give TurboTax a call anytime if you have additional questions or need assistance.
Have a great day!
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