A gift tax is a federal tax applied to a person giving anything of value to another person.
Gifts made each year at or below the annual exclusion are not taxable gifts. The annual exclusion for 2020 is $15,000; therefore, a person can give $15,000 each year to as many persons as they choose. The gifts are not taxable and do not have to be reported on a gift tax return.
|Annual Gift Tax Exclusion per Donee||$14,000||$15,000||$15,000||$15,000|
|Estate & Gift Tax Maxximum Rate||40%||40%||40%||40%|