A father walks his daughter down the aisle during her wedding.
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Imagine your child is getting married and you want to help pay for their wedding. You’ve been saving for years and now you have $30,000 set aside for their big day, which you plan to hand over in the form of a check.
However, before you hand over that much money, it’s important to understand the potential tax implications of making a gift of $30,000. A gift of that size could require you to pay federal gift tax, which can be as high as 40%. The good news is that you can avoid paying gift tax entirely, but there are filing requirements and other restrictions to keep in mind. Consult with financial advisor to reduce your gift tax liability.
The federal gift tax it applies when you transfer money or property to someone else without receiving something of equal value in return. Gift tax rates ranging from 18% to 40% depending on the size of the gift.
However, not all gifts trigger this federal tax. In 2025, the IRS allows you to gift up to $19,000 ($38,000 for married couples) per year to each person without paying the gift tax. This is called annual exclusion.
However, gifts that exceed this annual exclusion are also tax-free. Instead, they reduce the amount of money or property you can gift tax-free during your lifetime. This lifetime limit is known as the basic exclusion amount or lifetime exemption and is adjusted each year for inflation.
Gift tax only applies when you have exhausted your lifetime exemption. In 2025, a person can give up to $13.99 million during their lifetime without triggering gift taxes (this can change from year to year). For example, if someone gave away $14.5 million, they would only pay gift tax on $510,000. And if you need extra help planning major gifts, consider teaming up with financial advisor.
The federal gift tax only applies to very wealthy people who give away millions of dollars in property or assets during their lifetime.
If you want to give your child $30,000 to pay for the wedding, there are a few different ways it can be structured.
As a gift solely from you to your child, a wedding gift of $30,000 would avoid most tax liability on its own. The gift only exceeds the $19,000 annual exclusion for 2025 by $11,000, so that’s all that could be taxable if you’re single.
If this is your first time exceeding the annual exclusion, there’s more good news. In that case, the $11,000 excess would simply reduce your $13.99 million lifetime exclusion by that amount. You wouldn’t actually have to pay any gift tax unless you exceed the remaining lifetime exclusion, although you still have to fill out Form 709.
Alternatively, you can gift both your child and their future spouse $15,000 each and avoid the annual exclusion threshold (remember, you can gift up to the annual exclusion amount annually per person).
To make sure you are structuring your gifts in your best interest, discuss this with financial advisor.
But what if you are quite wealthy and have already exceeded your life expectancy? If it looks like you’ll owe taxes on your $30,000 wedding gift, there are a few other ways you can potentially avoid them:
Sharing gifts with your spouse: If you are married, you and your husband can agree to it share a gift on your tax returns. This would allow you to each earn $19,000 in gifts (in 2025) without exceeding the annual exclusion. That way, you can give your child up to $38,000 tax-free.
A couple is considering the tax implications of making a $30,000 gift for their daughter’s wedding.
While there are a number of ways you can legally avoid paying gift taxes, there are still requirements and risks to consider. Some of them include:
Proper reporting: Gift amounts above $19,000 must be reported to the IRS Form 709 to monitor lifetime exclusion. Failure to file Form 709 may result in penalties.
Mutual consent: Splitting gifts requires the consent of both spouses and the filing of Form 709. Failure to demonstrate mutual consent may also result in IRS penalties. Additional considerations may come into play when giving gifts if you live in one of the nine common property of the state.
Lifetime limits will be reduced in 2026. The Tax Cuts and Jobs Act (TCJA) doubled the lifetime gift and estate tax exemption limit in 2018 for individual filers. But starting in 2016, that generous cap will return to pre-2018 levels (adjusted for inflation). Note that a financial advisor can help you navigate and interpret tax law changes.
Most people can avoid paying federal gift taxes when they give $30,000 for a child’s wedding. That’s because of the generous lifetime gift exclusions. However, you will still need to correctly report gifts above the annual exclusion amount on your tax return. For 2025, this amount is $19,000. For taxpayers whose gifts may exceed the lifetime tax-free limit of $13.99 million, gift-splitting and other strategies can provide a tax-free way to finance a wedding.
If you are considering a large monetary gift, meet with financial advisor to check how this might affect your taxes and estate plan. Finding a financial advisor doesn’t have to be difficult. SmartAsset’s free tool connects you with up to three trusted financial advisors serving your area, and you can have a free introductory conversation with your advisors to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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 the next time you file.
Keep an emergency fund handy in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t exposed to significant fluctuations like the stock market. The trade-off is that the value of current money can be reduced by inflation. But a high interest account allows you to earn compound interest. Compare the savings accounts of these banks.
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