The Internal Revenue Service has a limit on non-taxable gifts. This means that if you give more than $16,000 to a single person ($15,000 for 2021; $16,000 for 2022), the government will accrue taxes from this gift.

However, there are several exceptions to this $16,000 annual limit. These include:

• Tuition paid directly to the institution on another’s behalf
• Medical expenses paid directly to the institution on another’s behalf
• Gifts for your spouse
• Charity gifts

This annual limit applies to all individuals, regardless of marital status. Both you and your spouse can give $16,000 to the same individual without being taxable.