How to Financially Support Your Child's Wedding

Key Takeaways

• Married couples can gift $68,000 annually to a child and their spouse ($17,000 per person × 2 givers × 2 recipients) without any gift tax filing or consequences
• You can give $68,000 before year-end and another $68,000 after January 1st without impacting your $12.92 million lifetime gift/estate tax exemption
• If gifting appreciated stock instead of cash, consider having your child (in a lower tax bracket) sell it rather than you selling it in a higher tax bracket—you both benefit from their lower tax rate
• There is no income tax on the recipient regardless of gift amount, and no tax on you giving the gift until you exceed both the annual exclusion and your lifetime exemption threshold