Gift Tax Annual Exclusion 2026 — $19K or $18K? Confused About Lifetime vs. Annual

I'm trying to set up a gifting program for my 5 grandchildren and I'm getting conflicting information everywhere. Some articles say $18K, some say $19K, and I keep seeing a "$13.99 million" number that has nothing to do with what I'm trying to give.

Questions: (1) How much can I give each grandchild in 2026 without triggering anything with the IRS? (2) My wife and I want to give together — does that double the amount? (3) We also want to pay for private school tuition for 2 of them — does that count against the limit?

Let me clear this up:

• 2024: Annual exclusion was $18,000/recipient
• 2025: Increased to $19,000/recipient
• 2026: $19,000/recipient (not yet adjusted; IRS announces in Q4 of the prior year)

The $13.99M is the lifetime exemption — that's the total you can give away during life + leave at death before any estate/gift tax kicks in. The annual exclusion is separate and doesn't touch it.

Your answers:

1. You can give $19,000 per grandchild per year with no IRS filing. For 5 grandchildren: $95,000/year.
2. Yes, your wife can also give $19,000 each. Together: $38,000 per grandchild, $190,000/year total. This is called "gift splitting" and requires filing Form 709, but no tax is owed.
3. Tuition paid directly to the educational institution is unlimited and exempt under IRC Section 2503(e). It doesn't count against the $19K annual exclusion or lifetime exemption. Just write the check to the school, not to the grandchild.

To add to what JKirby said: the direct-to-institution exclusion also works for medical expenses. Pay a grandchild's hospital bill or health insurance directly and it's completely exempt. No limit, no form, no impact on annual or lifetime exclusions.

The key word is "directly." If you give the money to the grandchild and they pay tuition, it counts as a regular gift. The check must go to the school.

This is so helpful. So if my wife and I are gifting $38K/year to each of 5 grandkids ($190K/year) PLUS paying tuition directly for 2 of them ($55K/year combined), we're moving $245K/year out of our estate with zero tax consequences?

Correct. $245K/year out of the estate, zero gift tax, and you only need to file Form 709 if you elect gift splitting (both spouses giving from joint or one spouse's separate assets). Over 10 years that's $2.45M removed from the estate. Combined with the $13.99M lifetime exemption, most families can transfer substantial wealth entirely tax-free.

The Estate & Gift Tax Hub has a section on gifting strategies and how they interact with the lifetime exemption.

Piggybacking: there's also the 529 superfunding option. You can front-load 5 years of annual exclusion gifts into a 529 plan in one year. That's $95K per grandchild ($19K x 5) in a single contribution. For a married couple: $190K per grandchild.

You file Form 709 and elect to spread the gift over 5 years. No gift tax, no lifetime exemption used. If grandparent dies within the 5-year period, only the remaining "unspread" portion is pulled back into the estate.

We've been doing $38K/year (split gifts) to each of our 8 grandkids for 6 years now. That's $1.824M moved out of our estate. No gift tax return drama — our CPA files the 709s and it takes 15 minutes. The hardest part was convincing my husband that "giving money to the grandkids" isn't the same as "losing money." It's still in the family, just outside the taxable estate.

Quick question: does the annual exclusion apply per donor per recipient? Meaning can I give $19K to my daughter AND $19K to her husband AND $19K to each of their 2 kids? That would be $76K to one household from just me.

Yes, exactly. The exclusion is per donor, per donee. You can give $19K each to your daughter, her husband, and both grandkids = $76K to that household. If your spouse also gives: $152K to that household. All annual-exclusion, no form required (unless you elect gift splitting).

The common mistake is thinking it's $19K per year total. It's $19K per person you give to. There's no limit on the number of recipients.