topic Computing Gift Tax Amount on Form 709 in Retirement tax questions

Computing Gift Tax Amount on Form 709

CzarSosa — Wed, 11 Feb 2026 10:01:27 GMT

When computing gift tax amount for 2023 for a gift of 150000, do you enter the number on the table on line 4 (table for computing gift tax) 23,800 or do you multiply the taxable amount 132,00 times the 30 percent.

Re: Computing Gift Tax Amount on Form 709

M-MTax — Wed, 05 Jun 2024 18:06:22 GMT

Use the table for computing the tax. In your case it's $23,800 PLUS 30% of the amount over $100,000.

Re: Computing Gift Tax Amount on Form 709

M-MTax — Wed, 05 Jun 2024 18:07:01 GMT

Don't forget to deduct your annual exclusion and I assume you did that.

Re: Computing Gift Tax Amount on Form 709

M-MTax — Wed, 05 Jun 2024 18:09:26 GMT

If it's $150,000 gift less $18,000 exclusion then you have a $132,000 taxable gift.

So you have tax of $23,800 plus 30% of the amount over $100,000 or $32,000 times 30%.

Total = $23,800 plus $9.600 = $33,400

Re: Computing Gift Tax Amount on Form 709

CzarSosa — Wed, 05 Jun 2024 19:03:42 GMT

Thanks for the detailed explanation. I had not idea on what to do.