This form is a sample letter in Word format covering the subject matter of the title of the form.
Gift Letter For Money Without Tax In Illinois
Category:
State:
Multi-State
Control #:
US-0018LR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
Use Form 709 to report: Transfers subject to the federal gift and certain generation-skipping transfer (GST) taxes.
Gradually making smaller gifts: Each year, taxpayers can gift up to what is called the “annual exclusion amount” (in 2025, $19,000 per donor per recipient; $38,000 for married couples) without incurring the gift tax.
While Illinois does not tax gifts made during your lifetime, the Illinois estate tax does take into account a certain amount of those taxable gifts that were made in excess of the annual exclusion amount ($18,000 in 2024 and filed on your federal 709 gift tax return).
Illinois has a flat 4.95 percent individual income tax rate. Illinois has a 9.5 percent corporate income tax rate. Illinois also has a 6.25 percent state sales tax rate and an average combined state and local sales tax rate of 8.86 percent.
Illinois Does Not Have A Gift Tax There is no gift tax in Illinois. But, any amounts you gift above the federal gift tax exclusion reduces your estate tax lifetime exemption limit in Illinois.
More info
The IRS taxes gifts made over a certain dollar amount. There is no gift tax in Illinois.But, any amounts you gift above the federal gift tax exclusion reduces your estate tax lifetime exemption limit in Illinois. List all reportable gifts made during the calendar year on one Form 709. One, a gift is not taxable for the donor or donee unless it exceeds lifetime gift tax exclusion during their lifetime. Generally, gifts that don't exceed the annual exclusion amount are not taxable. Gifts given for real estate purchases typically do not result in any taxes. This applies to both the giver and receiver. If you give people a lot of money or property, you might have to pay a federal gift tax. But most gifts are not subject to the gift tax.
