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.

  2017 2018 2019 2020
Annual Gift Tax Exclusion per Donee $14,000 $15,000 $15,000 $15,000
Estate & Gift Tax Maxximum Rate 40% 40% 40% 40%
Lori Ashmore Peters
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Helping Dallas area families with all of their legal Estate Planning, Probate and Business Planning needs.