There is a gift tax at the federal level. Yes, this means that gifts you give to others are potentially taxable. However, most people never pay the tax because of the existence of the annual gift tax exclusion. What Is It? The annual gift tax exclusion allows you to give as much as $14,000 to any number of people each calendar year free of the gift tax. Generally, if you never make a gift to anyone within a calendar year that exceeds the amount of the annual per person gift tax exclusion, … [Read more...] about What Is the Annual Gift Tax Exclusion?