Gifting limit

The annual gift exclusion is $15,000 per person in 2020. In other words, you can give up to $15,000 to each of your children, or $30,000 per child if married and your spouse elects to gift as well.

The $15,000 exclusion amount is not limited or restricted to family members; meaning you could give money to everyone you know, as long as any one gift does not exceed the exclusion amount. Gifts of equal or less than the exclusion amount do not need to be reported. But what if you give more? For example, if you were to give $25,000 to your favorite grandchild, the first $15,000 would not need to reported. However, the amount over the exclusion amount, in this case $10,000, would need to be reported on IRS form 709, Gift Tax Return.