10 Popular Tax Questions

Where do I deduct the $14,000 gift exclusion I gave my child?

Gifts are not deductions on an income tax return. People misunderstand what the $14,000 gift exclusion represents. The $14,000 gift exclusion is the maximum amount you are allowed to gift to one individual without being required to file a gift tax return. While in 2016 anyone can gift up to $5.45 million tax free, all gifts over $14,000 to any one individual must be reported on IRS Form 709.

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