What if a gift is more than the annual exclusion amount?

The total value of gifts the individual gave to at least one person (other than his or her spouse) is more than the annual exclusion amount for the year. The annual exclusion amount for 2023 is $17,000 and for 2024 is $18,000. The individual and his or her spouse wish to split all gifts made by each other during the calendar year.

What is the 2023 gift tax limit?

The 2023 gift tax limit was $17,000. For married couples, the limit was $17,000 each, for a total of $34,000. In addition to the annual gift tax exclusion, you get a lifetime gift tax exclusion. This means that any amount that you give over the annual limit is subtracted from your larger lifetime limit.

What happens if you exceed the gift tax limit?

If you exceed the annual gift tax limit, you may have to file a federal gift tax return ( IRS Form 709 ). But exceeding the limit doesn't necessarily result in owing tax, thanks to a high lifetime estate and gift tax exemption. The 2024 lifetime estate tax exemption is $13.61 million (double for married couples). (In 2023, it was $12.92 million.)