Will Paying $30k for My Child's Wedding Trigger Gift Taxes?

Core Insights - The article discusses the tax implications of making a $30,000 gift, particularly in the context of helping a child pay for a wedding [2][6]. Gift Tax Overview - The federal gift tax applies to transfers of money or property without receiving equal value in return, with rates ranging from 18% to 40% based on the gift size [3]. - In 2025, individuals can give up to $19,000 ($38,000 for married couples) per year to each individual without incurring gift taxes, known as the annual exclusion [3]. Lifetime Exemption - Gifts exceeding the annual exclusion do not automatically incur taxes but reduce the lifetime exemption, which is adjusted annually for inflation [4]. - In 2025, the lifetime exemption is set at $13.99 million, meaning only amounts above this threshold would be subject to gift tax [5]. Structuring the Gift - A $30,000 wedding gift can be structured to minimize tax liability, as it exceeds the annual exclusion by $11,000, which could be taxable if the giver is single [8]. - If this is the first instance of exceeding the annual exclusion, the excess amount reduces the lifetime exemption without immediate tax liability, although Form 709 must be filed [9].