910 / How does the splitting of gifts between spouses affect the gift tax annual exclusion?
By means of the "split gift" provision (see Q 904), a married couple can effectively use each other's annual exclusions. Thus, if, in 2024, A makes a $36,000 gift of securities to his child, C, and A's spouse, B, joins in making the gift (by signifying her consent on the gift tax return), the gift would be considered as having been made one-half by each, the exclusion is effectively doubled, and no gift tax would have to be paid (assuming neither A nor B made any other gifts to C during the calendar year).1 However, if A and B join in making the same gift to F, child of A's brother D and spouse E, while at the same time D and E make similar gifts to C and F, the scheme does not effectively again double the exclusion.2
If the spouse of the donor is not a United States citizen, the annual exclusion for a transfer from the donor spouse to the non-citizen spouse is increased from $10,000 to $100,000 (as indexed to $152,000 for 2018, $155,000 for 2019, $157,000 in 2020, $159,000 in 2021, $164,000 in 2022, $175,000 in 2023, $185,000 in 2024, $190,000 in 2025 and $194,000 in 2026)3 provided the transfer would otherwise qualify for the marital deduction if the donee spouse were a United States citizen. The $100,000 amount is adjusted for inflation, as is the $10,000 amount.4 However, the marital deduction is not available for a transfer to a spouse who is not a United States citizen (see Q 912).
1. IRC § 2513; Treas. Reg. § 25.2513-1.
2. TAM 8717003; Schuler v. Comm., 282 F.3d 575, 2002-1 USTC ¶ 60,432 (8th Cir. 2002); Sather v. Comm., 251 F.3d 1168 (8th Cir. 2001).
3. Rev. Proc. 2017-58, Rev. Proc. 2018-57, Rev. Proc. 2019-44, Rev. Proc. 2020-45, Rev. Proc. 2021-45, Rev. Proc. 2022-38, Rev. Proc. 2023-34, Rev. Proc. 2024-40, Rev. Proc. 2025-32.
4. IRC § 2523(i).