Annual Exclusion

Taxpayers are allowed to gift up to $13,000 per year to an unlimited number of people without having to file a gift tax return or pay a gift tax. If the amount goes over $13,000 to any one individual, then a gift tax return must be filed. This is done on IRS Form 709, United States Gift Tax Return. Connecticut taxpayers required to file a federal gift tax return would be required to file Form CT-706/709. The returns are due on April 15. A six month extension of time is granted automatically if an extension of time to file is requested for your individual income tax return. This is done on Form 4868. Taxable gifts above the annual exclusion reduce the federal estate tax exclusion amount when someone passes away. There are a few additional opportunities to gift beyond the annual exclusion without having to file a gift tax return. more…

Individuals may give up to $13,000 per year to an unlimited number of people.  This is known as the annual exclusion.  more…