Gifting money to my children

[Robert Kost]

Can I gift my children with tax-free cash ? Is there a maximum amount? Can you do it more than once a year?

[PattiF]

Yes, you can gift tax free cash of $15,000 to your children a year. A husband and wife can each make a gift of $15,000 a year. It can only be done once a year.

[Robert Kost]

Thank you for the clarification and the instant response. We are most appreciative.

[gerhardplenert]

Is the 15,000 limit on gifts to children a total or a per child amount

[DoninGA]

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@gerhardplenert wrote:

Is the 15,000 limit on gifts to children a total or a per child amount

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The $15,000 is per person per year.

[Tabby1843]

For 2022, the annual gift exemption has increased to $16K.  Married couple can now give up to $32K to a child. 

[execac]

The $15000 figure is correct for 2021.  For tax-year 2022 it will be increased to $16000.  Also correct is the fact that husband and wife can each gift up to the maximum.  Here's some additional info I didn't see addressed:  The gift can be money and/or property up to the exclusion limit.  Additionally, you can gift to ANY individuals you choose, it's not limited to just family.  I don't think there is a limit on the number of individuals either.  I believe also the gifting can be done in increments.  That being said, I could always use a spare $15000!  🙂

[tcheimre]

I got your reply that I can declare money gifs to children...but where is it to addressed in the tax forms? Listed as one of the charity listing? Or some other place?

[DoninGA]

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@tcheimre wrote:

I got your reply that I can declare money gifs to children...but where is it to addressed in the tax forms? Listed as one of the charity listing? Or some other place?

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Gifts given are not reported on a tax return.

If the gifts given to a single individual is more than $17,000 in 2023 you have to complete an IRS Form 709.

TurboTax does not support Form 709.  It is sent separately from the federal tax return and has to be mailed to the address in the 709 Instructions.

Go to this IRS website for a Form 709 - https://www.irs.gov/forms-pubs/about-form-709

[VolvoGirl · Accepted solution]

No you do not report gifts given or received from individuals.  Only gift to federally recognized charities.  If someone gives more than the annual limit to any one person, the giver might have to file a gift tax return form 709 to deduct the gift off their lifetime exclusion but there won't be any taxes due.

For 2023 the limit is 17,000. So you could give someone 17,000 and if they are married their spouse 17,000 for a total of 34,000. And if you are married you and your spouse can each give 17,000 to each of them for a total of 68,000.

709 is not part of your tax return and Turbo Tax doesn't have it.  

IRS 709 form,
https://www.irs.gov/pub/irs-pdf/f709.pdf

IRS 709 Instructions,
https://www.irs.gov/pub/irs-pdf/i709.pdf