Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 5, 2019 12:12:40 PM

How does Gift Annual Exclusion of $15000 work? Per giver per recipient per year?

Does it mean one recipient can get 5 gifts of $15000 from 5 people and those $75000 will not be taxable for the recipient? Thank you

0 6 1423
1 Best answer
Level 15
Jun 5, 2019 12:12:41 PM

A gift received from an individual is not reported on a tax return, regardless of the amount received.  So yes, you could receive $75,000 from 5 different individuals or even from just one individual and not have to report the gift on a tax return.

The annual gift that can be given without having to file a Form 709 is $14,000 per individual.  The reporting of the gift is only by the giver of the gift, not the recipient of the gift.

6 Replies
Level 15
Jun 5, 2019 12:12:41 PM

A gift received from an individual is not reported on a tax return, regardless of the amount received.  So yes, you could receive $75,000 from 5 different individuals or even from just one individual and not have to report the gift on a tax return.

The annual gift that can be given without having to file a Form 709 is $14,000 per individual.  The reporting of the gift is only by the giver of the gift, not the recipient of the gift.

New Member
Jun 5, 2019 12:13:32 PM

It is $15,000 for 2018. Thank you very much.

Level 15
Jun 5, 2019 12:13:33 PM

Right...For 2018 the annual gift amount is $15,000.  For the 2017 tax year it is $14,000.

New Member
Jun 5, 2019 12:13:35 PM

Does it make any difference for the recipient if the givers are US Citizens or they are not US Citizens and live in another countries?

Level 15
Jun 5, 2019 12:13:40 PM

Yes, it does make a difference.  If the giver of the gift is a foreign person and the amount that is given as a gift is over $100,000 then the receiver of the gift is required to report the gift to the IRS using Form 3520.  This is an informational report only so no taxes will be due on the gift.
IRS Form 3520 - <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f3520.pdf">https://www.irs.gov/pub/irs-pdf/f3520.pdf</a>
IRS Form 3520 instructions - <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i3520.pdf">https://www.irs.gov/pub/irs-pdf/i3520.pdf</a>

New Member
Jun 5, 2019 12:13:41 PM

I see. The resume: If all gifts are under $15,000, in 2018, then the receiver and all givers don't need to report anything and no taxes apply. Thank you very much for your help!