Maximize Your Gifts – The Gift Tax Exclusion
Did you know that you can use the annual Gift Tax Exemption to give money to friends and family, while reducing the size of your estate and without the need to file a gift tax return?
For 2023, you can gift up to $17,000 to as many recipients as you desire. If you are married, your spouse may do the same. (However, if one spouse gives the $34,000 gift and wants to split it with the spouse, it must be reported on a gift tax return.)
You can also make unlimited direct payments to a school for tuition, or a medical professional for medical care for someone else. Doing so does not reduce your annual gift tax exclusion ($17,000 for 2023), nor does it require a gift tax return filing.
Honorine Campisi, CPA