How does the gift tax annual exclusion work if my spouse and I give together?

Each person has their own annual gift tax exclusion, an amount the IRS adjusts yearly for inflation, that you can give to any number of recipients with no gift tax and usually no filing. Married couples can 'gift-split,' effectively doubling the amount to each recipient by combining both spouses' exclusions, even if the money comes from one spouse's account. For example, two parents can together give each child double the individual exclusion per year. If you split gifts, you generally must file Form 709 to elect gift-splitting, even though no tax is due. Gifts within the annual exclusion don't touch your lifetime exemption, making yearly gifting a simple way to move wealth to family tax-free.