How much money can you be gifted without claiming on taxes?

Ella Bryant December 2nd, 2025 at 2:47 AM

If you give people a lot of money, you might have to pay a federal gift tax. But the IRS also allows you to give up to $15,000 in 2020 to any number of people without facing any gift taxes, and without the recipient owing any income tax on the gifts.

In 2020 and 2021, you can give up to $15,000 to someone in a year and generally not have to deal with the IRS about it. If you give more than $15,000 in cash or assets (for example, stocks, land, a new car) in a year to any one person, you need to file a gift tax return.

Table of Contents

Do you have to pay tax on a gift from a parent?
Is there a way to avoid paying gift tax?
When do you have to pay inheritance tax on a gift?

Do you have to pay tax on a gift from a parent?

This means you don’t have to pay tax on gifts you receive from a parent unless you make a special arrangement to pay gift tax owed. The purpose of the gift tax is to prevent wealthy individuals from giving away assets to avoid the estate tax. The estate tax applies to the value of assets that exceed a decedent’s unused unified credit.

Do you have to file a gift tax return?

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Depending on the amount, your parents may need to file a gift tax return. If they gave you or any other individual more than $30,000 in 2020 ($15,000 per parent), they need to file some paper work. They generally won’t owe any actual out-of-pocket gift tax bill unless the gifts for the year exceeded their lifetime gift tax exclusion.

Is there a way to avoid paying gift tax?

Splitting these gifts up is an effective way to avoid paying gift tax. Some transfers of money are never considered to be gifts, no matter the amount. It’s given to a husband or wife who is a U.S. citizen. Special rules apply to spouses who are not U.S. citizens.

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When do you have to pay inheritance tax on a gift?

Yes, the timing of your gift matters. A gift you give someone more than seven years before you die is exempt from inheritance tax. Any gift that you give seven years or less before your death will be liable for inheritance tax, but this will be at a reduced rate depending on the number of years it is since you gave the gift.