What is the maximum that I can give to family members per year so that they won have to pay additional taxes?
For US Income Tax purposes, any gift received is not income and no income tax is ever owed on the gift. Therefore, your family members will not have to pay any tax on any amount you give to them. However, YOU will have to pay US Gift Tax if the gifts are too large. [Since you presumably would be giving more to your family if you did not have to pay the gift tax, it is just as bad for them.] There are several ways that people escape the gift tax. First, there is an annual exclusion of (currently) $11,000 per recipient for outright gifts . This means that the first $11,000 that you give to EACH family member is excluded from the gift tax. So, if you have a lot of family members, you can transfer a lot more money every year. [Two notes: [1] the $11,000 annual exclusion is adjusted for inflation by increments of $1,000 & [2] spouses can elect to ‘split-gifts’ and by doing so can each give up to $11,000 to each family member.] Second, there is a lifetime exemption amount of $1,000,000.
For US Income Tax purposes, any gift received is not income and no income tax is ever owed on the gift. Therefore, your family members will not have to pay any tax on any amount you give to them. However, YOU will have to pay US Gift Tax if the gifts are too large. [Since you presumably would be giving more to your family if you did not have to pay the gift tax, it is just as bad for them.] There are several ways that people escape the gift tax. First, there is an annual exclusion of (currently) $11,000 per recipient for outright gifts . This means that the first $11,000 that you give to EACH family member is excluded from the gift tax. So, if you have a lot of family members, you can transfer a lot more money every year. [Two notes: [1] the $11,000 annual exclusion is adjusted for inflation by increments of $1,000 & [2] spouses can elect to ‘split-gifts’ and by doing so can each give up to $11,000 to each family member.] Second, there is a lifetime exemption amount of $1,000,000. Alth
