Blog

💡 Gift Splitting: A Smart Strategy for Couples

💡 Gift Splitting: A Smart Strategy for Couples

A common tax strategy: married couples doubling their annual gift tax exclusion through something called gift splitting.

For 2025, the annual exclusion is $19,000 per recipient. That means:

On your own, you can gift $19,000 to as many people as you’d like without triggering gift tax reporting.

But if you and your spouse split the gift, you can give up to $38,000 per recipient—tax free.

This can be an incredibly effective way for families to transfer wealth, support children or grandchildren, or even make large lifetime gifts without eating into the lifetime estate and gift tax exemption.

Of course, gift splitting requires filing a gift tax return (Form 709), and there are nuances worth planning around. But used wisely, it’s a powerful tool to maximize tax-free giving.