Submitted By: someone
Answered: December 9, 2020 10:31 pm

If I make gifts to my relatives, do I have to file a gift tax return?

Gifts of cash and current interest property (not gifts of a future interest) do not have to be reported to the IRS on a gift tax return, Form 709, if the total to any recipient does not exceed the annual gift tax exclusion ($15,000 in 2020 and in 2021). There is no limit on the number of such gifts you can make each year. However, if married couples want to split gifts (i.e., one spouse consents to effectively assume half the gift made by the other spouse so that they can effectively double the exclusion amount), Form 709 must be filed even though no tax is due.

Tax Glossary

Cancellation of debt

Release of a debt without consideration by a creditor. Cancellations of debt are generally taxable.

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