2025 Gift Tax Updates: What Families and Business Owners Need to Know

At EC Barrett, LLC, we believe estate and tax planning should be clear, accessible, and actionable. With the IRS releasing its 2025 updates, now is the perfect time to review how gift tax rules may affect your financial strategy.  

  Key 2025 Gift Tax Updates

- Annual Exclusion: You can now give up to $19,000 per recipient in 2025 without triggering a filing requirement (up from $18,000 in 2024).  

- Lifetime Exemption: The unified estate and gift tax exemption is $13.99 million per individual or $27.98 million per married couple.  

- Non-Citizen Spouse Exclusion: Gifts to a spouse who is not a U.S. citizen are excluded up to $190,000 annually.  

- E-Filing Convenience: The IRS has introduced the Modernized e-File (MeF) system for Form 709, making secure electronic filing and payment easier than ever.  

- Estate Planning Certainty: Legislation has made the higher lifetime exemption amounts permanent, with inflation indexing beginning in 2027. This removes the prior “sunset” clause that would have reduced exemptions in 2026.  

 Filing Requirements

The donor (giver) is responsible for filing Form 709, not the recipient. You must file if:  

- You gave more than $19,000 to any one person (other than your spouse).  

- You wish to split gifts with your spouse (each spouse must file separately).  

- You gave a “future interest” in property, regardless of value.  

- You made gifts to a non-citizen spouse exceeding $190,000.  

- Tuition and medical expenses paid directly to institutions/providers are not taxable gifts.  

- Gifts to U.S. citizen spouses and qualified charities generally have unlimited deductions and may not require filing.  

 Deadlines & Filing Methods

- Deadline: Form 709 for 2025 gifts is due April 15, 2026.  

- Extensions:  

  - Filing Form 4868 for your income tax return automatically extends your gift tax return.  

  - You can also request a 6-month extension for Form 709 using Form 8892.  

- How to File:  

  - Electronically via the IRS Modernized e-File system.  

  - Or by mailing a paper copy to:  

    Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999  

 Why This Matters

Gift tax planning is more than compliance—it’s about maximizing your legacy. With higher exclusions and permanent lifetime exemptions, 2025 offers opportunities to transfer wealth strategically while minimizing tax exposure.  

At EC Barrett, LLC, we specialize in guiding families and businesses through these complexities. Whether you’re planning charitable contributions, supporting loved ones, or structuring estate transfers, our team ensures your filings are accurate and your strategy is aligned with long-term goals.  

 Next Steps

- Review your 2025 gifting plans.  

- Track amounts given to each recipient.  

- Consult with EC Barrett, LLC to ensure compliance and optimize your estate planning strategy.  

📞 Contact us today to schedule a consultation and make 2025 the year your financial planning works smarter for you.  

Disclaimer: This blog is for informational purposes only and does not constitute legal or tax advice. Please consult with a qualified tax professional for personalized guidance.