Gifts to individuals are not deductible. If you give more than the yearly limit of $16K to any one person you will need to complete a form 709 gift tax form, although you will not pay gift tax unless your lifetime gifts are in the millions.
You will, however, pay ordinary income tax on the withdrawal from your retirement account, at your own tax rate. At tax time you will receive a 1099R that you will have to enter on your tax return, even if you have tax withheld at the time you take out the money. The money withheld is only an estimate, and will be reconciled with your other income when you prepare your tax return.
GIFTS
Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return. Money that you gave as a gift to someone else is not deductible for your taxes.
Turbo Tax does not support the gift tax form 709, but here is a link:
https://www.irs.gov/pub/irs-pdf/f709.pdf
https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
