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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55308
Experience:  29 years of experience as a tax, real estate, and business attorney.
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My wife and I would like to give 26k to our son this year and

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My wife and I would like to give 26k to our son this year and the same amount next year.
Do we need to fill out an IRS form this or next year?
If we exceed the 26k per year allowed gift, what happens?

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. There is no reporting requirement if the gifts fall within the $13,000 annual gift exclusion per donor per donee. So, you can give the $26,000 to your son annually without any reporting requirement. In addition to that, each person has a lifetime
exemption in excess of $5,000,000....which means a person can give a cumulative amount of up to that amount in gifts without incurring gift tax....the donor must file a gift
tax return to let the IRS know how much of the lifetime exemption is being used,
but there will be no gift tax until cumulative gifts have exceeded the lifetime exemption amount of

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Customer: replied 4 years ago.
, You said no reporting required but I should let IRS know how much credit I am using. When do I need to do that?
There is no reporting requirement unless you and your wife go over the $26,000 with regard to your son in a calendar year. Only then would you need to file a gift tax return to let the IRS know how much of the lifetime credit you are using.
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