Beginning in 2022 the annual gift tax exclusion increases by $1,000 to $16,000 and to $32,000 for gifts jointly given by taxpayers and their spouse. This increase in the annual exclusion threshold is the first since the $1,000 jump for the 2018 tax year.
For annual gifts given in excess of this exclusion limit, including the funding of 529 plans for your kids and grandkids, the filing of the U.S. Form 709, United Stated Gift Tax Return is required. No tax is due with the filing of Form 709. The filing requirement is for informational reporting purposes only.
If you have gifted in excess of the annual exclusion amount, you should communicate the amount of the gift to your tax preparer this coming tax season. Plus, gifts received by taxpayers are not income for income tax purposes by the receiver of the gift.