What Is the Gift Tax?

The federal gift tax applies when you give someone money or property above the annual exclusion amount ($18,000 per recipient in 2024). Gifts above that amount require you to file a gift tax return (Form 709), though you generally don't owe any tax until you've used up your lifetime exemption ($13.61 million in 2024). The gift tax and estate tax share the same lifetime exemption — they're unified. Payments made directly to schools for tuition or to medical providers are exempt from gift tax, regardless of amount.