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.

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Tax Glossary

Cash method of accounting

Reporting income when actually or constructively received and deducting expenses when paid. Certain businesses may not use the cash method.

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