1. A. The gift tax increases a little each year so you have to check each year for gift tax liability. When you go over the gift amount, you need to file a gift tax return.
1. B. The one time 5 year contribution is treated as if it were 5 years of maximum gift. No other contributions are allowed. This does not affect your lifetime limit.
1. C. You can contribute as much as you want. You just have to either pay the gift tax 1A or make a 5 year deposit at one time 1B.
Since you overcontributed, you will need to file a gift tax return. See 529 Contribution Limits 2025: Gift Tax
2. No, you enter your allowed deduction. Under subtractions line 30, the amount is limited to $5,000 per taxpayer/ $10,000 MFJ.
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