The April 15 tax filing deadline is approaching, which also marks the due date for filing a gift tax return if you made significant gifts in the previous year, advises DunlapSLK, a CPA and business advisory firm based in Chalfont.
Understanding whether you need to file a 2024 gift tax return is crucial, and there may be benefits to filing one even when it is not required.
For 2024, the annual gift tax exclusion allows you to gift up to $18,000 per recipient without incurring gift tax or the need to file a gift tax return. Gifts exceeding this amount generally require filing a return, although you’ll owe gift tax only if an exclusion doesn’t apply and you’ve used up your lifetime gift and estate tax exemption ($13.61 million in 2024).
There are several rules pertaining to what types of gifts necessitate filing of a gift tax return and when you may want to file one regardless. DunlapSLK offers additional guidance on its website. Consulting with a tax professional will help ensure compliance with tax laws.
