Gifting money

[jimmceachern12030]

I withdrew 26,000 from IRA and took out taxes at the time of withdraw and then gave the money to my son as a gift, do i have to file irs form 709?

Thanks,

Jim

[xmasbaby0]

You will be paying tax on the money you took out of the IRA---watch for the 1099R that will come in January/early February.

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

I PAID TAX ON THE RETIREMENT MONEY ALREADY

You had tax withheld from the distributions from the retirement account, just like when an employer withheld tax from your paychecks.  When you enter it all into the software, the calculations are done to reconcile the amount of income you received and the amount of tax that was withheld.  You might owe more or you might get a refund.

GIFTS

Gifts given to family members, friends or other individuals are not deductible.   Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($19,000 per individual)  imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.

TurboTax does not support Form 709.  It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

Here's a link for Form 709 preparation software:

 https://www.puritas-springs.com/product-category/federal

[M-MTax]

See https://www.irs.gov/instructions/i709#en_US_2025_publink1000153221

If you gave gifts to someone in 2025 totaling more than $19,000 (other than to your spouse), you must generally file Form 709.

[VolvoGirl]

If your son is married you could give  him 19,000 and  his spouse 19,000 for a total of 38,000.  If you are married you and your spouse can each give him 19,000.  When you took the IRA withdrawal did you first put it in your bank account, then write him check etc?  

[jimmceachern12030]

I took $26,000 from my ira and had taxes taken out at the time of withdrawal.  It was deposited into my bank account.  Then wrote a check to my son for the whole amount. Was thinking my wife and I could both give $13,000 each or do just one of us have to claim all of it to the irs? In either case do we need to file form 709?

Thanks for your help,

Jim

[DoninGA]

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@jimmceachern12030 wrote:

I took $26,000 from my ira and had taxes taken out at the time of withdrawal.  It was deposited into my bank account.  Then wrote a check to my son for the whole amount. Was thinking my wife and I could both give $13,000 each or do just one of us have to claim all of it to the irs? In either case do we need to file form 709?

Thanks for your help,

Jim

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The annual gift exclusion in 2025 was $19,000.  So if both you and your spouse, separately, gave your son $13,000 each there is no requirement to file a Form 709.

[jimmceachern12030]

I took $26,000 from my ira and had taxes taken out at the time of withdrawal.  It was deposited into my bank account.  I then wrote one check to my son for the whole amount even though my wife and I are both giving the gift to our son. On form 709 even though I gave only one check, do I need to show my wife aggreed to the gift?

Thanks for your help,

Jim

[M-MTax]

@jimmceachern12030 

You can split that gift with your wife, yes, if you gave your son more than $19,000 from YOUR individual account.

[M-MTax]

@jimmceachern12030 

See https://www.irs.gov/instructions/i709#en_US_2025_publink1000128279