Core Points - The IRS allows individuals to give up to $19,000 per recipient in 2025 without incurring gift tax [4] - The lifetime gift tax exemption is currently set at $13.99 million, meaning gifts above this threshold may incur taxes [5] - Gift tax rates range from 18% to 40%, with the donor responsible for paying the tax [3] Gift Tax Overview - Gift tax is a federal tax imposed when property or money is given without receiving something of equal value in return [2] - The annual gift limit can change yearly, and there is no limit on the number of recipients [4] - If a gift exceeds the annual limit, a gift tax return must be filed, but taxes are only due if the lifetime limit is surpassed [5] What Constitutes a Gift - Any transfer of money or property without an equal return is considered a gift, including contributions to accounts or expenses paid for others [6] - Interest-free loans or unpaid loans may also be classified as gifts, and large withdrawals from joint accounts could trigger gift tax implications [7]