Final answer:
A taxpayer can give additional gifts in 2022 that do not trigger the gift tax, such as paying for someone else's tuition or medical expenses. Gifts like cash, cars, or real estate that exceed the $16,000 annual exclusion potentially trigger the gift tax unless covered by other exemptions.
Step-by-step explanation:
The question relates to the gift tax in the United States under the Internal Revenue Code. In 2022, in addition to the annual gift tax exclusion of $16,000, a taxpayer can also pay for tuition or medical expenses for someone else as additional gifts that do not count against the annual exclusion or require the filing of a gift tax return. Examples such as giving $5,000 in cash, a car valued at $20,000, a vacation home worth $200,000, or an antique painting valued at $30,000, would all be gifts that could potentially trigger the gift tax if they are not covered by the annual exclusion or other lifetime gift exemptions.
The estate tax, which is another form of federal tax, only applies to estates of significant value. For instance, according to LibreTextsTM, in 2013 the estate tax applied only to estates valued at over $5.25 million, indicating that this tax would typically apply to a small percentage of estates. It is important to note that these exemptions and limits can adjust with inflation and tax law adjustments over the years.