The Twelve Days of Taxmas – Gift Tax Exclusion
As Christmas approaches, Klatzkin is putting a twist on a holiday classic. But rather than filling your head with drummers drumming and golden rings, we’re focused on providing important tax insights through “The Twelve Days of Taxmas” blog series that could help minimize your tax liability.
On the eighth day of Taxmas, my accountant gave to me an annual Gift Tax exclusion of $15,000.
In 2020 and 2021, the annual gift tax exclusion is $15,000. Gifts less than the annual exclusion will not incur a gift tax and will not count against the unified credit, which is currently $11,580,000. A married couple may give $30,000 to an individual if they elect to split gifts. Tuition and medical expenses paid directly to an educational institution or medical provider are unlimited and do not count toward the annual exclusion or unified credit.
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©2020 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.