Child Tax Limit

donnieboston
donnieboston Member Posts: 23 Level 3
in General

Does anyone know whats the limit amount The IRS à parent can give to a child for the tax year 2025 ? Thanks!

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  • Austyn
    Austyn FreeTaxUSA Agent Posts: 35 image
    edited February 19

    Hi donnieboston,

    For tax year 2025, the annual gift tax exclusion is $19,000 per recipient. This means a parent can give up to $19,000 to a child without having to file a gift tax return or pay any gift tax.

    If a gift exceeds the annual exclusion amount, you'll generally need to file Form 709, however, you typically won't owe tax immediately—the excess amount can be applied against your lifetime gift and estate tax exemption, which is much higher.

    It's worth noting that FreeTaxUSA doesn't support preparing Form 709, but most people don't need to file one unless they've given more than $19,000 to a single person during the year. You can find more detailed information about gift tax rules on the IRS website at https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

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