A gift counts for gift-tax purposes in the year you actually complete it, so the window for 2026 closes on December 31, 2026. Before that date, consider three moves: annual exclusion gifts, direct tuition or medical payments, and 529 superfunding. You can use one, two, or all three.
1. Give up to $19,000 per person
In 2026, you can give up to $19,000 to any one person without filing a federal gift-tax return for that gift. The limit is per giver and per recipient, so a married couple can give $38,000 to the same person in 2026, and unused room does not carry over to 2027.
2. Pay tuition or medical bills directly
Under Internal Revenue Code § 2503(e), a payment made directly to a school or medical provider for someone else is not treated as a gift, so it does not use up your $19,000 for that person. It covers tuition only — not room, board, books, or fees — and the payment must go directly to the school or provider, not to the student or patient.
3. Front-load a 529 plan — five years at once
Under Internal Revenue Code § 529(c)(2)(B), you can contribute up to $95,000 from one giver — $190,000 for a married couple — to one student’s 529 plan in 2026 and elect to treat it as spread over five years on Form 709. That election uses up that student’s annual exclusion for the five-year period, so plan other cash gifts to that student accordingly.
Practical takeaway: finish each gift, confirm it is completed and posted, and keep the receipt or confirmation — all before December 31, 2026.
Checklist: finish $19,000 gifts, pay tuition or medical bills directly, confirm any 529 contribution is posted — all before December 31, 2026.
Questions? Contact us at info@leijianglaw.com or (440) 835-2271, or book a free 15-minute call: https://calendly.com/leijianglaw-info/15-minute-consultation.
This article is general information, not legal or tax advice for any specific person.
Sources: IRS Revenue Procedure 2025-32; IRC § 2503(e); IRC § 529(c)(2)(B).