Under the Internal Revenue Code, the so-called "present interest exclusion" allows every individual to make gifts of up to $19,000 per year per recipient without any gift tax concerns. The exclusion is computed on a per donor (gift-giver) per donee (gift recipient) basis. So, for example, a married couple with three children can make tax free gifts of up to $114,000 per year to their children (6 x $19,000). Gifts in excess of the exclusion--or gifts that do not qualify for the exclusion--count against the donor's lifetime federal gift tax exemption amount, which is currently $13,990,000 (2025 amount).