An individual may give a yearly amount free of federal gift or other transfer taxes without any IRS reporting requirements to each of an unlimited number of recipients. Also, these gifts do not use any of an individual’s federal gift tax exemption amount. The annual exclusion is indexed for inflation and is $15,000 per individual and $30,000 for a married couple for 2021. Suppose payment is made directly to providers of education or medical care services. In that case, they are also tax-free and do not count against the annual exclusion or gift tax exemption amounts.
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