A married couple wishes to gift as much as possible to their four children without making any taxable gifts. What is the total amount they can give each year?

To maximize the amount a married couple can gift to their four children without incurring gift taxes, it's essential to consider the annual exclusion for gifts as defined by the IRS. As of the relevant date, the annual exclusion allows each individual to gift a specified amount each year without triggering any gift tax. For 2023, this annual exclusion amount is $17,000 per recipient.

Since both spouses can each utilize their annual exclusion, together they can gift a total of $34,000 to each child without tax implications. With four children, this means the couple can collectively gift:

$34,000 (total from both parents per child) multiplied by 4 (children) equals $136,000.

In the provided question, the calculation leads to the conclusion that the total amount they can gift to their four children each year without making taxable gifts is indeed $136,000. However, if only considering the direct gift exclusion limit without incorporating both parents' contributions collectively, the amount would initially seem lower.

If interpreting the question strictly based on the ability to gift without tax implications per child without emphasizing the joint capacity, and assuming outdated figures, the amount that aligns with current practices is significantly higher in understanding of the pair's total investment in the gift