Gifting Smart in January 2025: Don't Miss Tax-Free Opportunities!

🎁Annual Gift Exclusion: In 2025, you can give up to $19,000 per person without owing gift tax. If you're married, that's $38,000 together. Act now to use this exclusion fully.

💡 Pro Tip: You can prepay up to five years' worth of gifts in one year without using up part of your lifetime gift tax exemption, thanks to a special IRS rule.

💊Medical Expenses: Payments directly to healthcare providers for someone else's medical costs are tax-free. This includes everything from premiums to treatments, but remember, direct payment is key.

💡 Pro Tip: Consider giving family members credit cards specifically designed for medical expenses and you pay off the balance at month end.

📚Education Gifts: Tuition paid directly to schools for someone else's education is also not taxed. This applies to all education levels but only covers tuition, not books or living expenses.

💡 Pro Tip: Prepaying four years of college tuition can secure a discount and allow for a refund if the student transfers, providing both cost savings and flexibility.

❓Why January? It's the perfect time to plan your gifts to ensure you don't miss these opportunities. Early gifting can reduce your taxable estate, provide immediate support to loved ones, and avoid forgetting as the year goes on.

⭐The Impact: By giving early, you're not just helping others; you're also engaging in smart tax and estate planning. These exclusions don't roll over, so don't wait!

Start the year with generosity that also makes financial sense. Here's to making the most of your 2025

giving strategy!

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