2018 Gift Tax Exclusion
The 2018 Gift Tax Exclusion is $15,000.
Effective 2018-01-01Source: Rev. Proc. 2017-58 (IRS)Verified 2026-08-29
Compared with 2017
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Annual exclusion per recipient | $14,000 | $15,000 | +$1,000 (+7.1%) |
Who it applies to
Taxpayers who make gifts to individuals during the 2018 calendar year
What changed this year, and why
The annual gift tax exclusion for 2018 is $15,000 per recipient, an increase from the prior year.
Common questions
- What is the annual gift tax exclusion for 2018?
- For calendar year 2018, the first $15,000 of gifts to any person (other than gifts of future interests in property) are excluded from taxable gifts under IRC § 2503.
- Does the exclusion apply to all types of gifts?
- The $15,000 exclusion applies to present-interest gifts. Gifts of future interests in property do not qualify for the annual exclusion.
When a gift needs no return at all
A donor does not have to file Form 709 for 2018 only when all three conditions are met at the same time. First, the donor made no gifts to a spouse during the year (gifts to a U.S.-citizen spouse are normally deductible but still must be reported in many cases). Second, the total value of gifts to each individual donee was $15,000 or less, so the annual exclusion covers every gift in full. Third, every gift was a present interest - meaning the donee had the immediate right to use, possess, or enjoy the property - rather than a future interest that is delayed until some later date. If any one of the three conditions fails, a return is required even when no tax will ultimately be owed. A donor whose only gifts are fully deductible charitable transfers also skips filing, provided the entire interest went to a qualified charity.
Who does not need to file. If you meet all of the following requirements, you are not required to file Form 709. • You made no gifts during the year to your spouse. • You did not give more than $15,000 to any one donee. • All the gifts you made were of present interests.
2018 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
The gifts the exclusion does not cover
Certain gifts, called future interests, are not subject to the $15,000 annual exclusion and you must file Form 709 even if the gift was under $15,000. See Annual Exclusion, later.
A gift of a future interest cannot be excluded under the annual exclusion. A gift is considered a present interest if the donee has all immediate rights to the use, possession, and enjoyment of the property or income from the property. A gift is considered a future interest if the donee's rights to the use, possession, and enjoyment of the property or income from the property will not begin until some future date.
2018 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
Who actually owes the gift tax
The gift tax falls on the person making the gift, not the person receiving it. The IRS considers the donor - the one who gives the property - to be the party responsible for paying any tax due on the transfer. However, if the donor fails to pay the tax, the recipient may be held liable instead. This rule keeps the reporting burden aligned with the person who chose to part with the property, while still ensuring the government can collect from the donee when necessary. The same principle applies to the generation-skipping transfer tax. Even when no tax will ultimately be owed because gifts stay within exclusions or deductions, the donor must still file Form 709 to report the transfers if a return is required.
The donor is responsible for paying the gift tax. However, if the donor does not pay the tax, the person receiving the gift may have to pay the tax.
2018 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
Splitting a gift with your spouse
A married couple may not file a joint gift tax return, so each spouse files an individual Form 709. When the couple elects to split gifts, both spouses must consent, and the return for each spouse should be filed together in the same envelope so the IRS can match the two elections and avoid correspondence.
A married couple may not file a joint gift tax return. However, if after reading the instructions below, you and your spouse agree to split your gifts, you should file both of your individual gift tax returns together (that is, in the same envelope) to help the IRS process the returns and to avoid correspondence from the IRS.
2018 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
When the return is due
Form 709 is an annual return. Generally, you must file Form 709 no earlier than January 1, but not later than April 15, of the year after the gift was made. If April 15 falls on a Saturday, Sunday, or legal holiday, the due date moves to the next business day. When the donor dies during the year, the executor must file the return by the earlier of the estate tax return due date or the regular April due date for the gift tax return.
Form 709 is an annual return. Generally, you must file Form 709 no earlier than January 1, but not later than April 15, of the year after the gift was made. However, in instances when April 15 falls on a Saturday, Sunday, or legal holiday, Form 709 will be due on the next business day.
2018 Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2017-58 (IRS)
- Annual exclusion per recipient
(1) For calendar year 2018, the first $15,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503 made during that year.