Re: I can't believe this is legal or is it?

I found this online as tax saving tip:

Gift if you can. You can give up to $12,000 away tax-free to each
person you choose. This is typically for retirees with significant
assets who want to gift money now, rather than leave it for estate
taxes later.

What if I am not retired? What if I do not have significant assets?
Can I give my niece 2000 bucks - because she is so cute - and deduct it
from the taxes?

No.

When they wrote "tax-free" they meant you don't have to pay gift tax.

They didn't mean income tax. No income tax deduction for a personal gift.
:-(

Donating to a charity will give you a deduction, though.
.