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.

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