If a donor makes four gifts of 19,000 to four different donees in 2026, what is the total amount excluded by the annual gift tax exclusion?

If a donor makes four gifts of 19,000 to four different donees in 2026, what is the total amount excluded by the annual gift tax exclusion?

• A. 19,000
• B. 152,000
• C. 76,000
• D. 95,000

Answer: (C)

Think about how the annual gift tax exclusion works: it applies to each recipient separately in a given year. In 2026, the exclusion amount per donee is 19,000. Since there are four different donees, each receiving 19,000, the excluded amount adds up for each person. For each donee, the full 19,000 is excluded, and with four donees the total exclusion is 19,000 × 4 = 76,000. If any single gift had exceeded the per-donee exclusion, the excess would count against the donor’s lifetime exemption or be subject to gift tax, but in this case every gift is at the exclusion amount, so the entire four gifts are excluded.

Think about how the annual gift tax exclusion works: it applies to each recipient separately in a given year. In 2026, the exclusion amount per donee is 19,000. Since there are four different donees, each receiving 19,000, the excluded amount adds up for each person.

For each donee, the full 19,000 is excluded, and with four donees the total exclusion is 19,000 × 4 = 76,000.

If any single gift had exceeded the per-donee exclusion, the excess would count against the donor’s lifetime exemption or be subject to gift tax, but in this case every gift is at the exclusion amount, so the entire four gifts are excluded.