How much money can be sent to USA as a gift?

Understanding Gift Tax Limits for Gifts to the USA

In the United States, individuals can send gifts to others without incurring a gift tax up to a certain monetary limit. This limit is set by the Internal Revenue Service (IRS) and is adjusted periodically for inflation.

2025 Gift Tax Exclusion Limit

For gifts made in the year 2025, the gift tax exclusion limit is set at $19,000 per recipient. This means that individuals can gift up to this amount to each person annually without triggering any gift tax obligations.

Implications of Exceeding the Limit

If the value of a gift exceeds the annual exclusion limit, the donor will need to file a gift tax return (Form 709) and potentially pay gift tax on the excess amount. The gift tax rates range from 18% to 40%, depending on the size of the gift.

Tax-Free Gifting

To avoid gift tax liability, individuals should ensure that the total value of gifts to any one recipient does not exceed the annual exclusion limit. This allows for tax-free gifting and can help preserve an individual’s wealth for future generations.

Special Considerations for Gifts to Non-US Citizens

It is important to note that the gift tax exclusion limit only applies to gifts made to US citizens and permanent residents. Gifts to non-US citizens are subject to a lower annual exclusion limit of $17,000 per recipient.

Conclusion

Understanding the gift tax limits is crucial when sending gifts to the US. By staying within the annual exclusion limit, individuals can avoid unnecessary gift tax obligations and ensure that their gifts are passed on to their intended recipients tax-free. It is recommended to consult with a financial advisor or tax professional for guidance on specific gifting strategies.