Form 709 Cash Gifts

[Oz6989]

One of my dependents need to file form 709 in the future income tax. Does that mean I can't use the person as a dependent since they need to file that form? My dependent obviously doesn't do income tax but needs to file the 709 form. Does that affect the dependent status or the form is separate from the status of dependency?

(She is my partner but not my wife)

[DoninGA]

A gift received is not reported on a tax return, regardless of the amount received.  Someone receiving a gift does NOT file a Form 709.

Since the gift is not reported on a tax return, it does not affect if they can be claimed as a dependent based on their gross income for the year.

[DoninGA]

However, based on the Qualifying Relative rules you must also have provided over one-half of the person's support to claim them as a dependent.

To be a Qualifying Relative -

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.
2. The person either (a) must be related to you or (b) must live with you all year as a member of your household.
3. The person's gross income for the year must be less than $4,700 (social security does not count) in 2023
4. You must provide more than half of the person's total support for the year.
5. The person must be a U.S. citizen or a U.S., Canada, or Mexico resident for some part of the year.
6. The person must not file a joint return with their spouse.

[Oz6989]

My dependent will be the donor NOT the RECEIVER. Thus, is the reason why she has to file the form 709 to IRS.

[DoninGA]

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@Oz6989 wrote:

My dependent will be the donor NOT the RECEIVER. Thus, is the reason why she has to file the form 709 to IRS.

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Then if they gift over $18,000 in 2024 they would be required to file a form 709.

That still does not exclude them from being claimed as a dependent under the Qualifying Relative rules if they meet all the requirements under the rules.