First, each year the gift tax allows an annual exemption. This is an amount of money or value that you can give away without needing to report the gift to the IRS at all. This exemption applies per-donor, per-recipient. In 2025, the annual exemption is $19,000. This means that you can give away up to $19,000 each to as many people as you would like without owing taxes or reporting the gifts to the IRS. These are also referred to as unreported gifts.Very few people owe either gift or estate taxes. This is be ...