A Simple Guide to U.S. Gift Tax
This tool simplifies the official Form 709 instructions, helping you understand the key tax benefits that allow you to give generously while minimizing or eliminating gift tax.
Key Ways to Give Tax-Free
Annual Exclusion
In 2024, you can give up to **$18,000** to any number of individuals without any gift tax consequences or filing requirements.
Lifetime Exemption
Beyond the annual exclusion, you have a large lifetime exemption (**$13.61 million** in 2024) to apply against taxable gifts.
Educational Payments
You can pay unlimited amounts for someone's **tuition** directly to an educational institution, completely tax-free.
Medical Payments
You can pay unlimited amounts for someone's **medical expenses** directly to the medical provider, completely tax-free.
Gift Tax Simulator
See how the annual and lifetime exclusions work. Enter a total gift amount and the number of people you're giving to. The chart will instantly show how much is tax-free.
Advanced Concepts & Filing Rules
If you're married, you and your spouse can elect to "split" gifts. This means a gift made by one person can be treated as if it were made half by each spouse. This effectively doubles the annual exclusion, allowing a couple to give up to **$36,000** per recipient per year without filing a gift tax return (for present interest gifts). To elect gift splitting, you must file Form 709, and your spouse must consent.
The Deceased Spousal Unused Exclusion (DSUE) allows a surviving spouse to use any of their deceased spouse's unused lifetime exemption. For example, if a spouse passes away having used only $3 million of their $13.61 million exemption, the remaining $10.61 million can be transferred to the surviving spouse. This "portability" must be elected by the executor on the deceased spouse's estate tax return (Form 706).
You must file Form 709 if you make a gift that is not covered by an exclusion. This includes:
- Any gift to an individual that exceeds the **$18,000** annual exclusion.
- Any gift of a "future interest," regardless of the amount (for example, putting property in a trust where the beneficiary cannot access it immediately).
- Any gift for which you and your spouse elect "gift splitting."
- Any taxable gift you want to apply against your lifetime exemption.