What is the Annual Gift Tax Exclusion Amount?

Gift Tax Exclusion Amounts

• You may give up to $13,000.00 to one individual or any number of people if you file as single.
• If you file married, then you may gift up to $26,000.00 to one person or any number of people.
• There are a few guidelines to ensure your gift is nontaxable:
  • The gift amount cannot exceed the gift tax exclusion amount during one calendar year.
  • If you have paid for someone else’s education expenses, then no matter how large the amount, this will remain nontaxable.
  • Your gift will remain nontaxable if you gave it to your spouse or a political organization.
  • You may need to file a gift tax return under certain circumstances. To file a gift tax return you will need to use Form 709.
  • If you have given gifts that are larger than the gift tax exclusion limit, then you will be responsible for the tax on the remaining gift amount. If you are married, then you will need to share the amount of that tax that is due on the gift amount.
  • If you are the recipient of a gift, then you will not need to report this on your return as long as it is considered a true gift and not any type of payment. If the gift produces income such as stock or a business, then you will need to pay tax on the income earned.

File 2010, 2011 Tax Return Online – Easy Online Tax Filing for 2010, 2011

Have you ever wanted to file your taxes online, but thought that only tax accountants have the knowledge and tools necessary for online income tax filing? This is a common misconception that many people have.

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So make this year the year you leave pen and paper behind, and file your income tax return online like i do.