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US News & World Report

5 Tax Rules to Know if You Give or Receive Cash

By Susan Johnston Taylor and Maryalene LaPonsie

However, for the 2018 tax year, IRS rules exclude $15,000 per year per person from the gift tax. “It’s similar to how everyone gets a standard deduction,” says Nick Holeman , a certified financial planner with advisory firm Betterment. Just as the government provides a standard amount that is exempt from income tax, the same applies to gift tax. Gifts made to pay tuition or medical bills are also excluded; to be eligible for this exclusion, the gifts must be paid directly to the school or health care provider.

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This article originally published February 22nd, 2019 on US News & World Report