Can I gift money to a non-US spouse? Do I need to declare it?

I have some money in an ISA and am wondering if it is possible to 'gift' around £20,000 to my non-US spouse. I've seen that the annual threshold for declaring a gift is $17000 and above that you have to file form 709. My two alternative thoughts are, I transfer half now and half in Jan so I don't have to declare anything, or is it possible to transfer half to another non-US friend/family member and have them transfer it to my spouse (I'm guessing this likely isn't allowed).

Also, are any of these rules different for a US expat gifting a non-US spouse?

The receiver of a gift never has to pay taxes on it, that is the responsibility of the giver.

A USC can gift over $30k per person per year without any reporting to the IRS

Oh really? I've seen online it says $17000 is the threshold for having to declare. Is this for a different type of gift do you know?

Oh really? I've seen online it says $17000 is the threshold for having to declare. Is this for a different type of gift do you know?

I apologise, you are correct. I was thinking of a couple. In which case you will need to file form 709 but that is reporting only. No tax due.

My reading of the information at the link below is that that a US citizen will only have to file a form 709 for outright gifts made to a spouse who is not a U.S. citizen, if they total more than $164,000.

Have I misunderstood?

https://www.irs.gov/instructions/i709#en_US_2022_publink16784xd0e705

My reading of the information at the link below is that that a US citizen will only have to file a form 709 for outright gifts made to a spouse who is not a U.S. citizen, if they total more than $164,000.

Have I misunderstood?

https://www.irs.gov/instructions/i709#en_US_2022_publink16784xd0e705

That sounds right to me. Good spot.

That sounds right to me. Good spot.

Thanks. Good news for me, as my wife is helping me out with the huge mortgage rate increases!

Can anyone clarify what is meant by 'non-resident not a citizen' please? That sounds like someone who isn't a US citizen?

It concerns residency too.  In the 2022 Form 709i, it's defined as:


Note that the draft 2023 Form 709i says the annual exclusion for gifts made to spouses is $175,000; i.e. a bit more than the $164,000 cited above in this thread for 2022.

2022 Form 709i:  https://www.irs.gov/pub/irs-pdf/i709.pdf
2023 From 709i (DRAFT):  https://www.irs.gov/pub/irs-dft/i709--dft.pdf

It concerns residency too.  In the 2022 Form 709i, it's defined as:


Note that the draft 2023 Form 709i says the annual exclusion for gifts made to spouses is $175,000; i.e. a bit more than the $164,000 cited above in this thread for 2022.

2022 Form 709i:  https://www.irs.gov/pub/irs-pdf/i709.pdf
2023 From 709i (DRAFT):  https://www.irs.gov/pub/irs-dft/i709--dft.pdf

Good spot. The piece you highlighted states that non-citizens who are not resident in the USA are only subject  to gifts made from tangible assets held in the USA so the OP is not covered by the gift tax since he is meets the criteria and is gifting from an ISA, which is not held in the USA.