23 Dec How much can I gift my kids for the holidays?

Q. I want to give my children cash gifts for the holidays and also as a pre-estate plan kind of move. How much can I give without having to report it to the IRS or have the banks report it?
— Giver, maybe

A. What a generous idea!

You didn’t say how much you might like to give, and the amounts matter.

For 2024, any individual is allowed to gift up to $18,000 to as many people as they want, said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.

For example, he said, if you have two children, you can give $18,000 to each of them. And if you’re married, your spouse can do the same.

Karu said for calendar year 2025, that limit will increase to $19,000.

“A gift tax return is not required if all of the gifts are under that limit. Banks do not report gifts,” he said. “However, if you try to make the gift in cash, and withdraw $18,000 from a bank, it will be a reportable transaction.”

Gifts by check or transfer from account to account do not get reported by banks, he said.

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This story was originally published in December 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.