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Gift tax for buying Savings I bonds for a child
I would like to ask a question about gift tax for buying Savings I bonds for a child.
Scenario:
Mom set up a TreasuryDirect account for a child (under age 18) and this account is linked to mom’s account. Mom bought $10000 savings I bond for this child using this child account in 2022. Then mom bought another $10000 savings I bond as a gift for the same child in 2022 and delivered it to the child in 2023. The child’s dad agreed to give this gift to the child and the money used to buy the bond was from the joint account of the parents.
Questions:
- Does this mean mom gave this child $20000 gift in 2022, or $10000 in 2022 and $10000 in 2023?
- If it should be considered $20000 gift in 2022, can this gift be considered $10000 from mom and $10000 from dad automatically or a gift tax return Form 709 must be filed?
- If a Form 709 need to be filed, should mom and dad file the Form 709 separately or they can just file one form? Is there a sample for filling Form 709 for this kind of case?
Thanks!
February 5, 2023
5:14 PM