Example
Input: $20k Gift, $17k Limit
Result: $3,000 Taxable
Step-by-Step Guide
- Value: Gift amount.
- Exemption: Annual limit.
- Taxable: Excess amount.
What is Gift Tax Calculator?
Calculates taxable gift amount based on value and annual exemption thresholds.
⚠️ Note: This tool provides financial estimates. It is not a substitute for professional advice. Always verify with a certified accountant or advisor.
How it Works
1. State 'Gift Value'.
2. Input 'Annual Exemption' ($17k in 2023, $18k in 2024).
3. Result shows taxable portion.
FAQ
Do I pay tax immediately?
Usually no, it just reduces your lifetime exemption ($13M+).
Who pays the tax?
The donor (giver), not the recipient.
Are gifts to spouses taxable?
Generally no, unlimited marital deduction applies.
Medical/Tuition?
Direct payments to institutions are exempt.
Annual limit?
Per recipient, per year.
Conclusion
Most people will never pay federal gift tax due to the high lifetime exemption. However, amounts over the annual limit must be reported. Use this tool to stay compliant without stress.