Super Fitness Health BlogIRS Gift Tax Limit Amount
Did you know that the Gift Tax Limit is continuously being increased by the IRS. Currently, you can give a gift up to $13,000 to any number of people. You should check each year for the new IRS gift tax limit amount.
Further, you are allowed to split a gift up in to two separate amounts less than $26,000, if you are married. Simply, this is the $13,000 you are allowed for yourself multiplied by two if you and your spouse are giving one single gift.
The provider of the gift is the person who will owe tax on the gift if it is over $13,000 for a single taxpayer and $26,000 for a married couple. The receiver will never owe tax on the gift, as the giver is always responsible for any tax assessed.
A gift is defined in the IRS tax code as a transfer of property where nothing is expected in return from the gift. For example, you can’t give someone your furniture, which is valued at $10,000 and expect something in return for it if you are claiming it as a gift.
Most people don’t realize but zero Federal or State tax is owed if the gift is given to a spouse or charity. You must make sure the charity is a qualified organization, which can be verified on the IRS website.
You are required to file a Gift Tax Return if you give a gift to someone else besides your spouse or charitable organization that exceeds $13,000.
If you are married, you will file a Gift Tax Return if you gave a gift exceeding $26,000. If you meet these requirements and are required to file a Gift Tax Return we recommend using Turbo Tax Online.
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