Are Gifts Taxable Income?

For various reasons, at different seasons, it sometimes makes sense to make monetary gifts to family members or other individuals. Although gifts to individuals are not generally deductible to the giver, neither are they taxable income to the recipient. As long as the total gift amount from any one individual to any other individual is under the annual gifting exclusion ($15,000 for 2021, $16,000 for 2022) there are no tax consequences to this type of gift. In the situation where a mother and father are wanting to make gifts to a son and daughter-in-law, for example, there are four unique gifts so four times the annual exclusion amount can be given without any issues ($60,000 for 2021 & $64,000 for 2022).