Articles Tagged with gift tax

Gifting money is a nice thing to do for a friend or family member, but—as the saying goes—no good deed goes unpunished. If you’re not careful, your gift could turn out to be subject to the federal gift tax of up to 40%.

In 2024, in Connecticut and federally, the annual and lifetime estate tax exemption is $13.61 million, meaning that when you die and your estate’s value is calculated, only the amount that’s more than $13.61 million is subject to the federal estate tax, unless otherwise excluded.

There is also an annual gift tax exclusion of $18,000. This means that you can give up to $18,000 (to as many people as you want) without having to pay any taxes on the gifts.