Understanding Gift Tax: How to Give Tax-Free

Understanding Untaxed Gift Money and Tax Exclusions

This script explains that gift money is a form of untaxed income if the amount does not exceed the annual gift tax exclusion, currently around $16,000 for a married couple. The recipient of the gift does not have to pay taxes on it, but the giver also does not receive any tax benefits. The video highlights how gifts can be used for significant expenses like down payments, college tuition, or medical bills, emphasizing the importance of filing proper gift tax forms if the gifted amount exceeds the exclusion limit.

00:00 Understanding Untaxed Income: The Basics of Gift Money