Question

I have a question about tax deductible gifts. I give my adult child money each month to support herself and her children. Are gifts to individuals considered tax deductible?

Answer

 

Gifts to individuals are not tax-deductible. Tax-deductible gifts only apply to contributions you make to qualified organizations.

Depending on how much money you are gifting to your adult child, you may have to pay a Federal Gift Tax. The Federal Gift Tax applies to gifts in excess of $14,000 per year, per recipient of the gift. Therefore you may gift your child under $14,000 per year without having to pay tax on the gift. Typically, the child or person receiving the gift does not have to a pay a tax on the gifted amount.

Additionally, you may gift up to $14,000 per year to multiple individuals without being subject to the Federal Gift Tax. If you are married, you and your partner may gift an individual up to $28,000 per year. Again, you and your husband are not limited to the number of people you may gift to in a given year.

For example, if you have one child you, as an individual, may gift that child up to $14,000 per year or as a married couple you may gift your child $28,000 per year. If you have more than one child you may gift each child up to $14,000 per year or you and your partner may jointly gift up to $28,000 per year per child.

Learn more about the Federal Gift Tax by visiting: https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes#2/p>

Learn more about Charitable Contributions, by visiting Publication 526: Charitable Contributions at www.irs.gov.

 

Related Topics

Related Resources

What Types of Tax Preparers Are There?

Tax preparers can have various designation and specialties. Learn how different types of tax preparers at H&R Block can help you in person or virtually.

How Does Changing Jobs Affect Your Tax Return?

Changing jobs can come with tax implications like job search and moving expense deductions. Learn more about these potential benefits at H&R Block.

What Is an Enrolled Agent or EA?

What does it mean to be an enrolled agent? Learn more about the roles and requirements of enrolled agent (EA) tax preparers at H&R Block.

What’s the Difference? Enrolled Agent vs. CPA

What’s the difference between an enrolled agent (EA) vs. a certified public accountant (CPA)? Explore the roles of EAs and CPAs at H&R Block.