Hal_Al
Level 15

Education

Q. Do I need to do anything special on my tax return since we contributed more than $18,000?

A. No.

 

Nothing about a gift is reported on your regular income tax return (form 1040).  There is a special form for gift tax reporting, but you are under the $36K, so you do not need to file form 709.   Furthermore there is something called super funding for 529 plans that allows you to contribute up to 5 years worth of contributions, in one year, and still not have to file a gift tax return. 

 

Super funding https://www.savingforcollege.com/article/10-rules-for-superfunding-a-529-plan

 

"Gift Tax" is somewhat of a misnomer.  Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...  

 

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