What is the maximum gift exclusion per recipient for taxpayers in 2023?

The maximum gift exclusion per recipient for taxpayers in 2023 is indeed set at $17,000. This exclusion amount refers to the annual limit of gifts that an individual can give to another individual without incurring federal gift tax or requiring the filing of a gift tax return.

The exclusion is also indexed for inflation, which is why it has increased from previous years, such as the $15,000 limit that was in effect prior to 2023. Therefore, any gifts exceeding this amount would potentially be taxable for the giver, although there are many considerations, such as the lifetime gift exemption and certain deductions that may apply. This annual exclusion serves to allow individuals to provide financial gifts with minimal tax consequences, fostering generosity while maintaining compliance with tax regulations.