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With the holiday season quickly approaching, now is a great time to educate yourself on the United States gift tax system. While gifts are generally thought of as being taxed, there are exceptions that exist. Some examples of nontaxable gifts include, gifts less than the exclusion amount, student tuition, medical expenses and gifts to your spouse. The annual exclusion gift is defined as a gift that is eligible for the annual exclusion from federal gift taxes. The exclusion amount is set each year by the IRS and rises with inflation. The 2017 annual gift tax exclusion amount is $14,000. This amount increased for 2018 to $15,000. This essentially means that an individual can gift this exclusio