Giving away Gifts to Family and Friends

You can give up to $13,000 this year to anyone without having any gift tax consequences. You don't have to pay gift tax or file a gift tax return, and the person who receives it doesn't have to report it on their income tax return. You can give up to $26,000 from a joint account and all of the above still holds true. You can give $26,000 away from your own individual assets, and if your spouse agrees to split the gift with you, then the only thing you have to do is file a gift tax return reporting the gift but no gift taxes will be due. This is one of the best estate planning tools for those with large estates.