Maximum Gift Without Tax for 2011, 2012

The IRS recently announced that the gift tax annual exclusion amount available to taxpayers will remain unchanged from 2009. The maximum gift without tax you may give any one individual is $13,000.

If you gift or are gifted less than $13,000.00, then there will be no tax assessed. However, if a person gifts more than $13,000 to an individual, this is called a lifetime gift and there are regulations that must be followed.

One important fact to know regarding gifts and tax regulations is that the gift amount is never deducted from the gift-giver's gross income. Another important fact is that if you are giving a gift of money to a tax-exempt organization there are no tax consequences.

There are two concepts to the regulations in place for gifting more than $13,000 to an individual.

• The first concept referenced above is the annual exclusion – which is defined as the maximum gift without tax being imposed.
• The second regulation is the unified credit – The current limit for this credit is $345,800.00.

If you are married, you may give your spouse any amount of money and not be imposed any tax. This exception is called the unlimited marital deduction. This only applies to US citizens; there is catch if you are not a US citizen. The total amount that a US citizen can gift their non-US citizen spouse is $134,000.

Another special case for the maximum gift without tax amount pertains to a married couple and they are able to gift up to $26,000 to any one individual.

For answers to all your tax-related questions, visit TurboTax Online today. They offer support including tax professionals 24 hours a day, 7 days a week to answer any questions you may have.