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When you receive or give a gift, you might not realize that gift may be subject to tax. The IRS taxes the value of gifts over a certain amount in any taxable year. Since the calculations can be complicated, the IRS suggests you consider all gift giving to be a taxable event, with limited exclusions. Gifts that are not taxable include gifts under a specified dollar amount in one year, tuition or medical expenses you pay for someone else, gifts to your spouse, and gifts to a political organization. The maximum dollar value for gifts not to be taxed is constantly changed by the IRS and is something you should research when contemplating an expensive gift. If your gift falls outside these exclusions and is taxable, you will have to consider whether the person giving or receiving the gift should pay the gift tax. Under special circumstances, the gift receiver may agree to pay.