DoninGA:
Thanks for the info. I have one important additional question. I made a $10,000 gift to a 529 college fund for my niece. I know that I must still fill out the form 709 even if I am under the $15,000 exclusion. I know I have to manually complete the 709 and mail it into IRS. However, on my 1099R, my income is overstated by the $10,000. How do I reduce my taxable income by this amount using Turbo Tax? Or, do I send it in with the full income amount as stated on my 1099R, and the IRS then matches my return up with my Form 709 to reduce my tax on their end? Hope you can help. Thanks.
