Gifting money to my children

Forum|Forum|5 years ago
March 22, 2021
2 replies
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Can I gift my children with tax-free cash ? Is there a maximum amount? Can you do it more than once a year?

Best answer by VolvoGirl

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

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.

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