𝗚𝗶𝗳𝘁 𝗧𝗮𝘅 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗨.𝗦. 𝗖𝗶𝘁𝗶𝘇𝗲𝗻 𝗦𝗽𝗼𝘂𝘀𝗲𝘀 𝗚𝗶𝘃𝗶𝗻𝗴 𝘁𝗼 𝗡𝗼𝗻-𝗨.𝗦. 𝗖𝗶𝘁𝗶𝘇𝗲𝗻 𝗦𝗽𝗼𝘂𝘀𝗲𝘀

In my practice, I often advise clients on the complex tax implications that arise when one spouse is a U.S. citizen and the other is not. The rules governing gifts between spouses in this situation differ significantly from those that apply when both spouses are U.S. citizens.

𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀 𝘁𝗼 𝗞𝗻𝗼𝘄

𝙉𝙤 𝙐𝙣𝙡𝙞𝙢𝙞𝙩𝙚𝙙 𝙈𝙖𝙧𝙞𝙩𝙖𝙡 𝘿𝙚𝙙𝙪𝙘𝙩𝙞𝙤𝙣

Gifts to a non-U.S. citizen spouse do not qualify for the unlimited marital deduction — even if the recipient spouse is domiciled in the United States.

𝘼𝙣𝙣𝙪𝙖𝙡 𝙀𝙭𝙘𝙡𝙪𝙨𝙞𝙤𝙣 𝙇𝙞𝙢𝙞𝙩

For 2025, the annual exclusion for gifts from a U.S. citizen to a non-U.S. citizen spouse is $190,000 (adjusted annually for inflation).

Any amount above this limit may trigger gift tax exposure.

𝙂𝙞𝙛𝙩 𝙏𝙖𝙭 𝙍𝙚𝙥𝙤𝙧𝙩𝙞𝙣𝙜

If the value of a gift exceeds the annual exclusion, the U.S. citizen spouse must file Form 709 (Gift Tax Return) to report the transfer.

𝙒𝙝𝙮 𝙏𝙝𝙞𝙨 𝙈𝙖𝙩𝙩𝙚𝙧𝙨

Understanding these distinctions is essential for effective cross-border estate and tax planning. Proper structuring can help minimize exposure to U.S. gift tax while ensuring full compliance with federal requirements.