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].

Core Insights - The IRS allows individuals to gift up to $18,000 per recipient in 2024 without incurring taxes, with a lifetime exemption of $13.61 million before taxes apply [2][7] - The gift tax rates range from 18% to 40% for gifts exceeding the exemption limits, primarily affecting wealthy individuals [5][7] Group 1: Gift Tax Overview - A gift is defined as a unilateral transfer of money or property without receiving fair value in return [3] - Certain exceptions exist for what constitutes a taxable gift, such as money given to dependents or tuition payments [4] - The gift tax is designed to prevent individuals from avoiding estate taxes by transferring wealth before death [7] Group 2: Annual Exclusion and Future Changes - The annual exclusion limit for gifting is set at $18,000 for individuals and $36,000 for married couples in 2024, increasing to $19,000 and $38,000 in 2025 [8] - The annual exclusion applies separately to each recipient, allowing for multiple gifts without triggering tax implications [8]