Gift taxes & form 709

Forum|Forum|3 years ago
October 26, 2022
1 reply
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I file a joint return with my wife. She gifted money to her daughter in excess of the 16000 exclusion (i believe that is the amount for 2022). In my reading it appears I have to file a separate gift tax return which is form 709. It is my understanding there is a 12 million lifetime exclusion so no taxes will be due on the gift. I have a few questions:

1. Should this be done with an accountant or is it easy enough to do myself?

2. Can the form be filled out electronically? From what I read... NO. If so, where can I get the software link? I saw a video on You Tube of someone filling out the form but it seemed very confusing and represented year 2020.

3. Given we are filing a joint return and this amount requires form 709, is there any information that would be required on my form 1040? From my reading... NO because it is a totally separate return.

Given this is new territory for me I am open to ideas or suggestions regarding reporting this gift.

Best answer by Anonymous_

In reverse order:

There is no information that is related to the gift that is required to be reported on your Form 1040.

Form 709 cannot be e-filed; it must be printed and mailed.

Depending upon the amount of the gift, and your tolerance for a somewhat steep learning curve, you might want to consult with a local tax professional. You can, however, try to prepare the return yourself and you can even find software available (paid) to do so. Do a Google search using the following search terms (copy and paste):

A software product for preparing U.S. Gift Tax returns