How Much Can You Gift Your Spouse or Kids? Let us talk about taxes on presents in the USA. If you get a gift, you might have to pay a tax on it. Either the person giving the gift or the one getting it has to pay, depending on what the gift is. However, do not worry; some gifts do not have taxes.
We will talk more about the IRS Gift Limit, how much tax, and other different concepts in this article.
2024 Gift Rules by IRS
A ‘Gift’ is when you give something without getting something back or not getting the full value for it. In the USA, if you get big gifts, you have to tell the government when you file your taxes.
Usually, the person giving the gift pays the tax, but sometimes, the person getting the gift might have to pay. The IRS Gift Limit says that if the gift is worth less than a certain amount, you do not have to tell the officials about it.
In 2024, the limit got a boost by $1000, making it $18000 in total. So, if you give someone a property within this limit, no tax is needed.
However, if your gift is more than this amount, you have to tell the donors by filing a tax return. The extra amount gets added to your lifetime gift tax limit. In 2023, this limit was $12.92 million, but it might have changed now.
What is the IRS Gift Limit for Spouses and kids?
The IRS says if you are married, the limit is $36000. That means you can give stuff worth that much without paying any tax.
Moreover, here is the best part: if you and your spouse have two kids, you can give each kid a gift up to that amount this year.
The IRS Gift Limit works the same for both spouses and kids, like I told you earlier. However, here is a twist: If your spouse is not from the USA, the gift rule does not count. You will have to pay tax if you are passing something on to them.
IRS Tax Rates 2024
If your gifts go over the lifetime limit, you have to pay taxes based on the table below. Anything beyond the allowed limit is taxable.
| Amount Taxable | Tax Rate |
| Less than $10000 | 18% |
| Between $10001-$20000 | 20% |
| Between $20001-$40000 | 22% |
| Between $40001-$60000 | 24% |
| Between $60001-$80000 | 26% |
| Between $80001 -$100000 | 28% |
| Between $100001-$150000 | 30% |
| Between $150001- $250000 | 32% |
| Between $250001-$500000 | 34% |
| Between $500001-$750000 | 37% |
| Between $750001-$1000000 | 39% |
| More than $1000000 | 40% |
IRS Tax-Free Gifts 2024
The rates in the table are for 2023. The tax officials will give us the official rates for next year soon.
Moreover, here is some good news-some gifts do not get federal taxes:
- Gifts worth less than the yearly allowed IRS Gift Limit.
- Gifts to political groups that are not public. Only the officials can get these gifts.
- When you gift your USA-citizen spouse.
If you pay education or medical bills straight to the school or clinic, it is cool. However, if you give the money to someone else to pay, it might be taxed.
Everyone needs to stick to the rules the officials set to dodge fines or extra charges. The cool thing is, if you pay attention to the Tax Limit, you can catch a break on your Federal Tax. That means saving money and living a better life.
Hope this article gives you all the info you need about the IRS Gift Limit and other important facts.
Important Link
People May Ask
How much can you give as a gift in 2024?
You can give a certain amount without telling the IRS. In 2023, it was $17,000, but in 2024, it was $18,000.
What is the limit for a wedding gift tax?
It is Rs.50,000. If wedding gifts from friends or unrelated folks go over this, the whole amount becomes taxable.
How much can you legally gift to a family in the USA?
You can give up to $17,000 to one person each year, and there is no limit to how many people you can give to. Also, there is a lifetime exemption of $12.92 million.
Are gifts from parents taxable?
Nope! If your parents, spouse, siblings, or close relatives like in-laws give you gifts, no tax worries. This applies no matter how valuable the gifts are.
