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 gift tax applies to gifts in excess of $15,000 per year, per recipient of the gift. Therefore you may gift your child under $15,000 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 $15,000 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 $30,000 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 $15,000 per year or as a married couple you may gift your child $30,000 per year. If you have more than one child you may gift each child up to $15,000 per year or you and your partner may jointly gift up to $30,000 per year per child.

Related Topics

Related Resources

Where’s my refund – Colorado?

Looking for more information about your Colorado refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.

Where’s my refund – Indiana?

Looking for more information about your Indiana refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.

Filing Taxes When Separated but Married

Learn more about filing taxes when you are separated but married. The tax experts at H&R Block help you navigate this tricky filing status.

Required To File Tax Return This Year?

Can you file taxes this year without having filed last year? Learn more from the tax experts at H&R Block.