gifts Generally, the following gifts are not taxable gifts: Gifts that are not more than the annual exclusion for the calendar year (last raised to $17,000 per recipient for any one donor, beginning in 2023) Gifts to a political organization for its use Gifts to charities Gifts to one's (US Citizen) spouse Tuition or medical expenses one pays directly to a medical or educational institution for someone. Donor must pay the expense directly. If donor writes a check to donee and donee then pays the expense, the gift may be subject to tax. Exemptions There are two levels of exemption from the gift tax. First, gifts of up to the annual exclusion incur no tax or filing requirement. By splitting their gifts, married couples can give up to twice this amount tax-free. Each giver and recipient pair has its own annual exclusion; a giver can give to any number of recipients and the exclusion is not affected by other gifts that recipient may have received from other givers. Second, gifts in excess of the annual exclusion may still be tax-free up to the lifetime estate basic exclusion amount ($11.58 million for 2020). For estates over that amount, however, such gifts might result in an increase in estate taxes. Taxpayers that expect to have a taxable estate may sometimes prefer to pay gift taxes as they occur, rather than saving them up as part of the estate. Furthermore, transfers (whether by bequest, gift, or inheritance) in excess of million may be subject to a generation-skipping transfer tax if certain other criteria are met. Non-residents For gift tax purposes, the test is different in determining who is a non-resident alien, compared to the one for income tax purposes (the inquiry centers around the decedent's domicile). This is a subjective test that looks primarily at intent. The test considers factors such as the length of stay in the United States; frequency of travel, size, and cost of home in the United States; location of family; participation in community activities; participation in U.S. business and ownership of assets in the United States; and voting. It is possible for a foreign citizen to be considered a U.S. resident for income tax purposes but not for gift tax purposes. If a person is a non-resident alien for purposes of gift tax, taxation of gifts is determined in a different way. If the property is not located