In 2020, you gave $15,000 to your brother, $25,000 to your wife, $17,000 to your daughter's college tuition, and $5,000 to your sister. How much will you owe gift tax on?

Question

Quizplus · Accepted Answer

In 2020, the annual gift tax exclusion was $15,000 per recipient. Gifts to a spouse are unlimited and not subject to gift tax. The $17,000 for your daughter's tuition is also exempt if paid directly to the institution. Therefore, only the $5,000 to your sister is considered, which is below the exclusion limit.

In 2020, You Gave $15,000 to Your Brother, $25,000 to Your