The annual exclusion for gifts increases in 2018. An individual can give up to $15,000 per person per year without incurring a gift tax. This is up from $14,000 in 2017.
An individual who gives away more than $15,000 in a year to a single recipient is subject to the gift tax on the amount that exceeds $15,000.
The gift tax is owed by the giver of the gift, not the recipient. Recipients generally never owe income tax on gifts of any amount.