Question about gift tax of excessive contribution to 529

[phnixwxz]

My wife and I planned to contribute $140,000 to the 529 account for my daughter. However, we made a mistake that we contributed $18,000 more than planned. We distributed the excessive amount once we noticed the mistake.

My question is: can I just report $0 taxable gift amount, or should I report the $18,000 as excessive gift, in the gift tax return?

[RichardG]

As a general rule, making a gift is an intentional act.  You can't make a gift by mistake.  I assume the extra money has returned to you.  Since you had no intent to make a gift in excess of $140,000, and the excess contribution has been removed from the account, your gift to the 529 account for 2016 is $140,000, and that is the amount you should report on Form 709.  

I assume that your gift to the account meets all the requirements for "superfunding" a 529 account.  Please see page 6 of the instructions for Form 709 for more information.  https://www.irs.gov/pub/irs-pdf/i709.pdf