Gifting money this year? Here’s how it may be taxed

What is a Gift Tax? It is a federal tax imposed on certain transfers of any assets made as gifts without expecting anything in return.

Transfers to a spouse in any amount if they are a US Citizen, and a  limit of $164,000 for 2022 if they are non-citizens.

Exclusion from the Gift Tax

– Gifts to a political organization – Charitable contributions – Medical expenses which are paid directly to the institution

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Exclusion from the Gift Tax

That means you can give up to $16,000 to as many people as you want during the year and owe no gift tax on those transfers.

Annual Gift Tax Limit for 2022

For the tax year 2022, the lifetime gift tax exemption is $12.06 million  per person. That means you can give up to $12.06 million without owing  any gift tax.

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Lifetime Gift Tax Exemption


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