What is the annual gift tax exclusion per recipient in 2022?

What is the annual gift tax exclusion per recipient in 2022?

• A. 8,000
• B. 32,000
• C. 64,000
• D. 16,000

Answer: (D)

The annual gift tax exclusion is the amount you can give to one person in a single year without owing gift tax or having to file a gift tax return. In 2022, that amount was $16,000 per recipient. So you could give up to $16,000 to any one person that year without tax or reporting requirements. This limit is per recipient, so you can gift $16,000 to many different people in the same year. If you’re married, you and your spouse can choose to treat gifts to the same recipient as made jointly, which doubles the amount to $32,000 to that recipient in 2022 (gift splitting), as long as you file the appropriate election. Any amount over the $16,000 (or $32,000 with gift splitting) would count against your lifetime exemption, which was $12.06 million per person in 2022.

The annual gift tax exclusion is the amount you can give to one person in a single year without owing gift tax or having to file a gift tax return. In 2022, that amount was $16,000 per recipient. So you could give up to $16,000 to any one person that year without tax or reporting requirements. This limit is per recipient, so you can gift $16,000 to many different people in the same year.

If you’re married, you and your spouse can choose to treat gifts to the same recipient as made jointly, which doubles the amount to $32,000 to that recipient in 2022 (gift splitting), as long as you file the appropriate election. Any amount over the $16,000 (or $32,000 with gift splitting) would count against your lifetime exemption, which was $12.06 million per person in 2022.