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2019 Annual Gift Tax Exclusion; Gift Tax Exemption

Updated: Feb 28

Annual Gift Tax Exclusion; Gift Tax and Estate Tax Exemption


The annual gift tax exclusion remains at $15,000 per donee for 2019 and 2020 for gifts of cash or present interests. The basic exemption amount for gift tax and estate tax purposes increases to $11,400,000 in 2019 and $11,580,000 in 2020 (this is the lifetime credit).


There is an unlimited gift tax exclusion for payments of another person’s tuition or medical expenses, if you make the payment directly to the educational organization or care provider. The medical and educational exclusions are allowed without regard to the relationship between you and the donee for whom you are making the payments. The exclusion for directly paid educational expenses applies only to tuition, not to room and board, books, or supplies.


Please let us know If you made a gift that exceeds the allowable annual exclusion. A gift tax return is required to be filed to report the gift and claim the exclusion.

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©2020 by Denise Hue.