First Year 709 Gifting of Cash by Husband and Wife

[LTCJSH]

2024 was the first year that my wife and I gifted cash to our Son and Daughter-In-Law. 

We gave an Anniversary present of $2,000 to them both. 

Then we gave a cash gift to our son of $20,000.  We each gave our son a check for $10,000.

How should we both show that we did this together? Can it be done on a single Schedule A?

Next year we will need to file another 709 as we gave our son another cash gift. My wife wrote a check out of our joint account for an amount that will exceed the authorized amount.

Thank you,  LTCJSH

[Hi Palms]

The annual exclusion for 2024 is $18,000 per person per donee. 

You and your wife could gift a total of $36,000 (in 2024) to your son before you would need to file a 709.

[xmasbaby0]

Nothing about the gifts to your son goes on Schedule A in your personal income tax return.  Gifts to family members are not itemized deductions.

Gifts given to family members, friends or other individuals are not deductible.   Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($18,000 per individual)  imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.

TurboTax does not support Form 709.  It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

Here's a link for Form 709 preparation software:

 https://www.puritas-springs.com/product-category/federal

Here are some useful videos on the Form:

https://www.youtube.com/watch?v=a5wJow5h-No

https://www.youtube.com/watch?v=5Z_28sVOrTY

[RobertB4444]

If you make a gift to any one person of less than $18,000 (or $19,000 in 2025) then you don't need to report anything at all.

For this year if the gift that you gave your son would exceed $38,000 from both you and your spouse you might consider making a part of the gift to your daughter-in-law instead.  As long as you don't give anyone more than $38,000 this year you won't need to file a gift tax return.

@LTCJSH