Do I need to file Gift Tax Return (Form 709)?

Forum|Forum|2 years ago
February 20, 2024
2 replies
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In 2023, I worte a check for 34k from a joint checking account to our son to help with downpayment. Since my wife and I each has a 17k gift tax exclusion, there won't be any actual tax consequence. My question is do I need to file a Form 709 gift tax return, and have my wife claim half the gift, or do we each need to file a gift tax return?

I've read Form 709's instructions and am still not clear if I need to file any form. In the future I may consider writing checks from separate accounts to avoid this headache.

If i need to file, does TurboTax support Form 709? If not, can I submit Form 709 separately? I usually eFile my income tax with TurboTax.

Not A Product Question

Best answer by Hal_Al

Q. 34K check from joint account, need to file Form 709?

A. No. That is each of you making a $17K gift, which is the limit.

Q. If i need to file, does TurboTax support Form 709?

A. No.

Q. If not, can I submit Form 709 separately?

A. You must file form 709 separately. It is not part of your income tax filing.

"Gift Tax" is somewhat of a misnomer. Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/INF12127.html

Hal_AlAnswer

Employee

Q. 34K check from joint account, need to file Form 709?

A. No. That is each of you making a $17K gift, which is the limit.

Q. If i need to file, does TurboTax support Form 709?

A. No.

Q. If not, can I submit Form 709 separately?

A. You must file form 709 separately. It is not part of your income tax filing.

MinhT1

The annual gift exclusion is $17,000 in 2023. For married couples, the exclusion is $34,000. As your gift to to your son is within the exclusion limits, you aren't required to file a gift tax return (Form 709). This is so even if you wrote the $34,000 check from a joint account.

Form 709 isn't supported by TurboTax. If needed, form 709 must be filed separately.

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