Contributions to the Trump account will not be subject to gift tax reporting under safe harbor rules, according to guidance released Monday by the Treasury Department and the Internal Revenue Service.
As a result, parents, guardians, grandparents and others can contribute up to $5,000 a year after taxes to a Trump account without having to file a gift tax return.
“By granting this relief, the IRS is responding to the concerns of taxpayers who were concerned that planned contributions to Mr. Trump’s account could trigger gift tax reporting rules,” IRS CEO Frank Bisignano said in a statement. “This relief package will reduce the potential burden on friends and family members who want to deposit funds into Mr. Trump’s accounts.”
Experts said gift tax filing requirements were a potential sticking point.
To qualify for the annual exclusion, the gift must be of “current interest” and immediately accessible to the recipient. According to the IRS, cash contributions to the Trump account “will be treated as completed gifts, subject to the annual gift tax deduction for each donee, and not as gifts of future property rights.”
These gifts also count toward the annual gift exclusion amount, which is $19,000 per recipient in 2026.
“I think it’s a very positive thing that the IRS has done for us because it’s going to reduce the burden of paperwork for taxpayers,” said Lawrence Pong, a certified financial planner and CPA based in Redwood City, California.
It would also relieve a significant burden on the IRS, he added. “The IRS typically receives about 300,000 gift tax returns a year, but if contributions to the Trump account were subject to this requirement, the number of returns would be in the millions,” Bong said.
