form 709 rquired for joint gift from joint account?

Forum|Forum|1 year ago
January 5, 2025
2 replies
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Is it correct that If the total gift amount from the joint account does not exceed $36,000 per recipient in 2024, neither spouse needs to file Form 709. Source is Investopedia. https://www.investopedia.com/terms/g/gift-splitting.asp

Not A Product Question

Hi Palms

Level 7

You only have to worry about filing if the total exceeds the annual exclusion amount. Investopedia is wrong often anyway. Try Fidelity:

https://www.fidelity.com/learning-center/wealth-management-insights/gift-splitting

rjs

Level 15

The Investopedia article that you referenced doesn't say that Form 709 is not required. It says:

"they could write one check from a joint account for the total amount and still use the gift-splitting option."

"Couples must file Form 709 if they decide to use the gift-splitting option"

"If you're a married couple and decide to split the gift, make sure you file Form 709"

Writing a check from a joint account does not automatically mean you are using gift splitting. You have to file Form 709 in order to split the gift. If the check from the joint account exceeds the annual gift tax exclusion for one person, Form 709 is required.

The annual gift tax exclusion for 2024 is $18,000. For 2025 it is $19,000.

Hi Palms

Level 7

@rjs wrote:
If the check from the joint account exceeds the annual gift tax exclusion for one person, Form 709 is required.

If the gift from the joint account exceeds the combined annual exclusion for BOTH joint account holders, then Form 709 is required.

A lot of the time, parents with joint accounts are not even writing checks. Instead, they're transferring the gifted funds from their JTWROS account to their kid's account via ACH.