How Much Money Can You Give Your Child Without Paying Taxes in the U.S.?
How Much Money Can You Give Your Child Without Paying Taxes in the U.S.? If you’re planning to give your child a large sum of money — for college, a house, or just a head start in life — you might be wondering: Will the IRS tax it? Let’s break down how gift taxes work in the U.S. and what you need to know to give wisely. 🎁 What Is the Gift Tax? The gift tax is a federal tax applied when one person gives money or property to another without receiving anything in return . But don’t panic — there are generous exemptions , and most people never end up paying this tax. ✅ Annual Gift Tax Exclusion (2024) You can give up to $18,000 per year per person without any tax or reporting . Married couples can combine their exclusions → $36,000 per child per year Applies to cash, checks, stocks, property, or other assets 📝 No IRS Form 709 required if you're under the limit. 💼 What If You Exceed the Limit? You don’t pay tax right away. Instead: You file IRS Form...