Gift Tax Calculator
Calculate federal gift tax liability for 2024. Includes annual exclusions, lifetime exemptions, and gift tax planning strategies.
Gift Tax Summary
Total Gift Amount:
$0
Annual Exclusions:
-$0
Taxable Amount:
$0
Gift Tax Owed:
$0
Exemption Status
Lifetime Exemption:
$0
Used Exemption:
$0
Remaining Exemption:
$0
Planning Recommendations
Annual Gifts Needed:
0
Tax Efficiency:
High
Strategy:
Annual Exclusion
Understanding Federal Gift Tax
The federal gift tax is a tax on transfers of property during life. With generous annual exclusions and lifetime exemptions, most gifts are tax-free. Understanding these rules is essential for effective estate planning.
2024 Gift Tax Exemptions
| Exemption Type | 2024 Amount | 2023 Amount | Change |
|---|---|---|---|
| Annual Exclusion per Recipient | $18,000 | $17,000 | +5.9% |
| Lifetime Exemption | $13,610,000 | $12,920,000 | +5.3% |
| Spousal Lifetime Exemption | $27,220,000 | $25,840,000 | +5.3% |
Gift Tax Rates (2024)
| Taxable Amount Over | Tax Rate | Tax Owed |
|---|---|---|
| $0 - $13,610,000 | 0% | $0 |
| $13,610,000 - $22,784,000 | 18% | $0 + 18% of excess |
| $22,784,000 - $38,959,000 | 20% | $1,675,440 + 20% of excess |
| $38,959,000 - $64,650,000 | 22% | $4,864,240 + 22% of excess |
| $64,650,000 - $96,163,000 | 24% | $9,963,640 + 24% of excess |
| $96,163,000 - $149,137,000 | 26% | $19,715,640 + 26% of excess |
| $149,137,000 - $355,137,000 | 28% | $35,191,640 + 28% of excess |
| $355,137,000+ | 30% | $85,191,640 + 30% of excess |
Annual Exclusion Rules
What Qualifies
- Cash gifts
- Stocks and bonds
- Real estate
- Personal property
- Trust interests
What Doesn't Qualify
- Tuition payments
- Medical expenses
- Gifts to political organizations
- Gifts to spouses (unlimited)
- Qualified charities
Special Rules and Considerations
Spousal Gifts
- Unlimited exclusion for U.S. citizens
- No gift tax return required
- Portability rules apply
- Community property considerations
Crummey Trusts
- Allows annual exclusion for trust gifts
- Beneficiaries must have withdrawal rights
- Complex but effective strategy
- Requires careful planning
Filing Requirements
When to File Form 709
- Gifts over annual exclusion
- Gifts of future interests
- Trust distributions
- Foreign gifts
Filing Deadlines
- Due April 15 following gift year
- Extensions available
- Penalties for late filing
- Interest on unpaid tax
Gift Tax Planning Strategies
Annual Gifting
$18,000 per recipient
Tax-free transfers
Reduces estate
529 Plan Contributions
Up to $18,000 per year
Tax-free growth
Education expenses
Irrevocable Trusts
Remove from estate
Annual exclusion applies
Asset protection
State Gift Taxes
Some states have their own gift tax rules. Connecticut and Minnesota are the only states with separate gift taxes, though many states follow federal rules.
State Gift Tax Summary
- Connecticut: $12,000 annual exclusion, 6% rate
- Minnesota: Follows federal rules
- Most states: No separate gift tax
- State estate tax: May affect planning
Key Takeaways
- Annual exclusion is $18,000 per recipient for 2024
- Lifetime exemption is $13.61 million (2024)
- Most gifts are tax-free due to generous exclusions
- Gift tax is unified with estate tax
- Spousal gifts are unlimited for U.S. citizens
- Annual gifting can reduce estate tax liability
- Form 709 required for gifts over annual exclusion
- Consult an estate planning attorney for complex situations