I agree with your example for $30,000. That is the way it should work.
I redid my return using your suggestion (reporting only the individual spouse's gifts on each return) and it eliminates the spouse’s gifts on Line 1 as expected.
Unfortunately using my Form 709 software for 2020 with the spouse's split gifts in each return the results come right back to the original subject. The spouse's gifts are added to Line 1.
If the 2020 software did not add the spouse's gifts to line 1 the totals for Line 3 are identical for individual gifting and spouse gifting. I.e. the sum of both returns.
Therefore the problem remains - why are software providers for Form 709 including the spouse's gifting on Line 1 rather than following the instructions?
Thanks for your help.
PS - I am familiar with the lifetime exemption. The concern is it is going to be lowered.
