Submitted By: someone
Answered: December 21, 2021 11:52 pm

If I gift money to my grandchildren, is there a tax deduction I can take?

Unlike deductions for charitable contributions to IRS-recognized organizations, there is no income tax deduction for gifts you make to individuals. What’s more, if gifts of cash exceed the annual gift tax exclusion—$15,000 in 2021; $16,000 in 2022—you must file Form 709, but in most cases no gift tax will be owed because of the lifetime exclusion.

Tax Glossary

Health reimbursement arrangement (HRA)

Employer established account that provides tax-free reimbursements to employees for deductibles and other expenses that could be taken as itemized deductions.

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