Any gift of more than $14,000 from one person to another during a calendar year requires the giver to file a gift tax return. There is no tax on the gift until lifetime gifts exceed about $5 million.So a father could give $14,000 to their child, another $14,000 to their child's spouse, and another $14,000 to their grandchild without having to file a gift tax return. And then the mother could make the same gifts and also not need to file a gift tax return.That $14,000 includes all gifts during a calendar year. So if there is a gift of exactly $14,000 and then another gift of a $20 shirt for a birthday, the $14,000 threshold is now exceeded and a gift tax return is required.There is no impact on income taxes. The giver does not get a tax deduction for the gift and the recipient does not have to pay income tax on the gift.--Peter
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