How Much Money Is Considered a Gift?
Gifting money can be a tricky situation, especially when trying to decide how much is considered an appropriate amount. Generally speaking, the IRS defines a gift as any transfer of property or cash in which the recipient receives no actual goods or services in exchange, and there are certain legal limitations on how much money can be given without triggering additional taxes.
The current federal gift tax limit is $15,000 per person per year; anything over this amount requires filing of a tax form by the giver, and could result in taxable income for recipient depending on their personal tax rate. Whether someone should give more than this amount depends on their relationship with the receiver and other factors such as whether it’s for a wedding or graduation present - both of which usually require more substantial amounts.
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