Is a $30,000 wedding gift to your child taxable? what to know

During the wedding, a father led his daughter down the aisle.

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Imagine your children are getting married and you want to help pay for their wedding. You've been saving for several years and now have $30,000 set aside for their big day, which you plan to hand over in the form of a check.

However, before you give away that much cash, it's important to understand the potential tax implications of giving a $30,000 gift. A gift of this size may subject you to federal gift taxes of up to 40%. The good news is that you can avoid paying gift taxes entirely, but there are reporting requirements and other restrictions to keep in mind. Consult a financial advisor to minimize your gift tax liability.

Federal gift taxes apply when you transfer money or property to someone else without receiving equal value in return. Gift tax rates range from 18% to 40% depending on the size of the gift.

However, not all gifts trigger this federal tax. Through 2025, the IRS allows you to gift up to $19,000 per person per year ($38,000 for married couples) without paying any gift tax. This is called the annual exclusion.

However, gifts that exceed the annual allowance are not necessarily taxable. Instead, they reduce the amount of money or property you can give away tax-free during your lifetime. This lifetime limit is called the base exclusion amount or lifetime exemption and is adjusted annually for inflation.

Gift taxes only apply when you exhaust your lifetime exemption. As of 2025, a person can donate up to $13.99 million in a lifetime without triggering gift taxes (this may change from year to year). For example, if someone donates $14.5 million, they would only pay $510,000 in gift tax. If you need additional help planning a major gift, consider matching with a financial advisor.

The federal gift tax only applies to highly wealthy individuals who give away millions of dollars in assets or property during their lifetime.

If you want to give your children $30,000 to help pay for the wedding, there are a few different ways you can structure it.

As a separate gift from you to your children, a $30,000 wedding gift by itself can avoid most tax liability. This gift is only $11,000 more than the annual exemption of $19,000 in 2025, so that's all the amount that might be taxed if you're single.

If this is the first time you've exceeded your annual exclusion limit, there's more good news. In this case, the $11,000 excess would only reduce your lifetime exemption of $13.99 million by that amount. Although you still need to fill out Form 709, you don't actually have to pay any gift tax unless you exceed your remaining lifetime exemption.

Alternatively, you can gift $15,000 each to your children and their future spouse and avoid the annual exclusion threshold (remember, you can gift up to the annual exclusion amount each year) per person).

To ensure your gift is in your best interest, discuss it with a financial advisor.

But what if you are extremely wealthy and have exceeded your lifetime limit? If it seems like you'll need to pay taxes on your $30,000 wedding gift, there are a few other ways to avoid those taxes:

Share gifts with your spouse: If you are married, you and your spouse can agree to split the gift on your tax return. This would give each of you a gift of $19,000 (in 2025) without exceeding the annual exemption. This gives you up to $38,000 tax-free for your child.

A couple is studying the tax implications of a $30,000 gift for their daughter's wedding.

While there are many ways you can legally avoid paying gift taxes, there are still requirements and risks to consider. Some of these include:

Correct report: Gift amounts over $19,000 must be reported to the IRS on Form 709 to track the lifetime exclusion. Failure to file Form 709 may result in penalties.

Both parties agree: Gift division requires the consent of both spouses and the filing of Form 709. Failure to prove mutual consent may also result in IRS penalties. If you live in one of the nine community property states, there may be additional factors to consider when sharing gifts.

Lifetime limits will be reduced in 2026. The Tax Cuts and Jobs Act (TCJA) doubled the lifetime gift and estate tax exemption limits for individual filers in 2018. But starting in 2016, this generous cap will return to pre-2018 levels (adjusted for inflation). Remember, a financial advisor can help you understand and explain tax law changes.

Most people can avoid federal gift taxes when donating $30,000 for a child's wedding. This is because of the generous lifetime exclusion amount for gifts. However, you still need to properly report gifts that exceed the annual exemption on your tax return. In 2025, this amount is $19,000. For taxpayers whose gifts may exceed the $13.99 million lifetime exemption, gift splitting and other strategies may offer a way to fund a wedding without paying taxes.

If you are considering making a large financial gift, meet with a financial advisor to understand how this may affect your taxes and estate planning. Finding a financial advisor isn’t difficult. SmartAsset's free tool matches you with up to three vetted financial advisors serving your area, and you can have a free introductory call with your advisor to decide which one you think is the best fit for you. If you're ready to find an advisor who can help you achieve your financial goals, get started today.

As tax season approaches, SmartAsset's federal income tax calculator can tell you how much you might owe in federal, state, and local income taxes when you next file.
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