However, if you extend your federal income tax filing to October 15, 2018, the extension also applies to your gift tax return.
How the lifetime gift tax exclusion works.That comes in handy when youre giving away more than 15,000.These brackets will continue to be adjusted for inflation annually; The social security tax remains.2; The alternative minimum tax (AMT) exemption amounts are increased to 84,500 (was 83,800) (joint return) and 54,300 (was 53,900) (single The maximum tax rates for most long-term capital gains.To illustrate how it works, suppose you have three adult children and seven grandchildren.The entire transfer in 2018 will be exempt from gift tax.Gifts between spouses are unlimited and generally dont trigger a gift tax return.Picciurro explains it like this.Well, Grandma and Grandpa just triggered the gift tax exclusion because its over 15,000.As long as a federal estate tax remains in effect, this could still be beneficial, especially to elderly taxpayers.
Now, there are a lot of things to worry about in life, but the gift tax probably isnt one of them.
The IRS generally doesnt care about what you give away to other people unless that giving exceeds some lofty amounts.
However, if you tap best gifts for students going to university into the lifetime gift tax exemption, it erodes the estate tax exemption amount that would be available when you die.If youre lucky enough and generous enough to use up your exclusions, you may indeed have to pay the gift tax.An additional 1 millionaires tax on income over 1,000,000.That could pay for most, if not all, of the college expenses hes likely to incur.NerdWallet adheres to strict standards of editorial integrity to help you make decisions with confidence.That doesnt mean you have to pay a gift tax.