Does giving more than the annual exclusion mean tax is due?

AI reviewed

Not automatically. Giving one person more than the annual exclusion in a year generally means the donor files Form 709, but filing a return and owing tax are different things. The donor's lifetime basic exclusion — $15,000,000 for 2026 — is taken into account in figuring any gift tax, along with taxable gifts from earlier years. Because earlier gifts and other facts affect the outcome, large or repeated gifts should be reviewed with a qualified tax professional.