What is the maximum gift amount you can give to an individual annually without triggering the federal gift tax?
In general, the maximum total of all gifts that you can give in 2010 without triggering a potential federal gift tax is $13,000 per gift recipient. Your spouse can agree to split a gift with you and apply their $13,000 annual exemption toward a gift you make so you can give away up to $26,000 without triggering the federal gift tax. If you make a gift directly to a qualifying educational institution as tuition, or to a medical provider for medical care, on behalf of an individual, that gift doesnt count toward the $13,000 annual exclusion. Should you wish to make annual gifts totaling more than $13,000 to any individual, you will have to file an annual gift tax return but no gift tax will be due until you exhaust your maximum lifetime limit on cumulative gifts and that limit is presently $1 million. The United States Treasury Department reviews the annual gift exclusion limits every year, and may increase it based on increases in the cost of living.
