If two people share a checking account and are not married, do they need to be cognizant of who is depositing and who is withdrawing for tax purposes if the withdrawal quantities exceed the $16k exclusion limit?
Your situation will be dependent on the relationship of the two people that own the joint account.
If married, the annual gift exclusion doesn't apply as one may gift to their spouse without limit.
If the two owners are not married, recordkeeping is never a bad thing. Tracking the deposits and withdrawals as you referenced would allow you to know exactly who owns the funds going in and out of the account. If one owner does use the other owner's funds for their personal purposes with no intent of repayment, it definitely could be construed as a gift.
Additionally, be aware that the gift exclusion for 2023 is $17,000.
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Elizabeth W, EA
You can each write and sign a separate check, or each make a separate transfer from any account, joint or separate, that each of you individually has access to.
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