Gift Tax Guide 2025 | Limits, Exemptions & Filing Rules Explained

Gift Tax

Gift Tax Summary for 2025

Annual Gift Tax Exclusion:

  • The annual gift tax exclusion for 2025 is $18,000 per recipient.

  • If gifting more than this amount to a single recipient, the excess must be reported.

Tax Implications for the Giver:

  • The first $18,000 is excluded from reporting.

  • Any amount above $18,000 requires filing Form 709 (Gift Tax Return).

  • No immediate tax payment is due, as excess gifts apply to the lifetime gift and estate tax exemption ($13.61 million in 2025).

Tax Implications for the Recipient:

  • Gifted funds are not taxable income for the recipient.

  • No reporting obligations for the receiver.

Key Considerations for Gift Payments

  • The date of completion (when funds are received) determines the applicable tax year.

  • If a transfer is initiated in late 2024 but completed in 2025, it falls under 2025 tax rules.

  • A second gift of $18,000 within 2025 is still within the exclusion limit.

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