Get your taxes done using TurboTax

Generally, a 3520 is required if a gift is given by a nonresident alien. it sounds like your parents are resident aliens through the green card test so a 3520 is not required. However your parents may need to file a 709 Gift tax return if:

1. If you gave gifts to someone in 2023 totaling more than $17,000 (other than to your spouse), you probably must file Form 709. But see Transfers Not Subject to the Gift Tax and Gifts to Your Spouse, later, for more information on specific gifts that are not taxable.
2. Certain gifts, called future interests, are not subject to the $17,000 annual exclusion and you must file Form 709 even if the gift was under $17,000. See Annual Exclusion, later.
3. Spouses may not file a joint gift tax return. Each individual is responsible to file a Form 709.
4. You must file a gift tax return to split gifts with your spouse (regardless of their amount) as described in Part 1—General Information, later.
5. If a gift is of community property, it is considered made one-half by each spouse. For example, a gift of $100,000 of community property is considered a gift of $50,000 made by each spouse, and each spouse must file a gift tax return.
6. Likewise, each spouse must file a gift tax return if they have made a gift of property held by them as joint tenants or tenants by the entirety.
7. Only individuals are required to file gift tax returns. If a trust, estate, partnership, or corporation makes a gift, the individual beneficiaries, partners, or stockholders are considered donors and may be liable for the gift and GST taxes.
8. The donor is responsible for paying the gift tax. However, if the donor does not pay the tax, the person receiving the gift may have to pay the tax.
9. If a donor dies before filing a return, the donor's executor must file the return.

Who does not need to file.

If you meet all of the following requirements, you are not required to file Form 709.

• You made no gifts during the year to your spouse.
• You did not give more than $17,000 to any one donee.
• All the gifts you made were of present interests.

709 Gift Tax instructions

Gifts From a Foreign Person