What is the maximum tax-free gift amount parents can give children?

The maximum tax-free gift amount that parents can give to children in 2015 is $14,000. This is the same annual exclusion as in 2014. A gift is considered to be any transfer to an individual, whether directly or indirectly, where full consideration is not received in return.

In general, gifts that are not considered taxable include gifts that are not above the annual exclusion for the calendar year, tuition or medical expenses paid for someone else, gifts to one's spouse, and gifts to a political organization for its use. If married individuals want to give away property they own together, the annual exclusion limit applies to both, and therefore they can give up to $28,000 together to each recipient.