Question 60 of 75 . Megan gave a $22,000 taxable gift (after the application of any relevant annual exclusion) to her son, Charles, in 2020. She reported the gift on a gift tax return, but paid no tax because she had not yet exceeded her basic exclusion amount. In 2022 , The total amount that the estate can pass on tax-free is reduced by $22,000. Charles must file a gift tax return in 2022. Megan's estate will be subject to the generation-skipping transfer tax. A $22,000 credit will be applied on the estate's Form 706 . Mark for follow up