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jaoaoao32321
Returning Member

1

 

 

8 Replies
xmasbaby0
Level 15

1

Not sure what you are trying to do.  TurboTax does not provide or support the gift tax form 709.  And if you are trying to claim the gifts as deductions on your schedule A you cannot claim gifts to the kids as itemized deductions.  Your gifts do not go anywhere on your 2020 tax return.

 

 

GIFTS

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return.  Money that you gave as a gift to someone else is not deductible for your taxes.

 

Turbo Tax does not support the gift tax form 709, but here is a link:

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

 

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

 

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
jaoaoao32321
Returning Member

1

Yeah, I understand that, but that doesn't mean I'm not supposed to fill out a 709 regardless if TurboTax provides that. I know they don't, but I thought I could come to this forum to at least get advice. 

Carl
Level 15

1

I get the impression that you think your gift to your son has to be reported on your 1040 tax return. It is not.

Gifts are not reported on any tax return, ever. Additionally, the name of the form is misleading. *NOBODY* pays tax on a gift. Period. This IRS just has reporting requirements for a gift given in any one tax year, if the value of that gift exceeds $15K. All the giver is required to do is report it to the IRS on the form 709. That's it.

In your case, the value of the gift given to your son in a single tax year is $40,000. So your spouse gifted him $20K and you gifted him 20K. Each of you needs to file your own separate IRS Form 709.

The form 709 is *NOT* filed with your 1040 tax return. It gets mailed separately to the IRS to the address in the instructions. If you need help with the actual form itself, I don't think you'll find many in this forum that can help. But the instructions for the 709 can be found at https://www.irs.gov/pub/irs-pdf/i709.pdf  The address you mail it to is also in those instructions. (It may not be the same place you would mail your return to.)

 

jaoaoao32321
Returning Member

1

No, I do know that, I'm literally just having trouble filling out the 709 form cause I'm confused by the inconsistency I found from samples by other people. I called it a tax return form because that's literally what's top of the form says "US Gift (and Generation-Skipping Transfer) Tax Return".  I literally have the instructions already for filling the form, I just want someone to double-check if I'm filling it out correctly because I NEED to fill it out regardless even if there isn't any actual tax on it. The instructions aren't perfect so I just wanted to double-check with someone who's filled out the 709 before. 

Carl
Level 15

1

Wish I could help. But I'm just not knowledgeable enough on that form. If you have the patience to wait on hold, you might try calling the IRS help line at 1-800-829-1040 and see what that gets you.

 

martinmarks1919
Level 8

1

You seem to be confused by the gift splitting part of this so you should know:

 

A married couple may not file a joint gift tax return. However, if after reading the instructions below, you and your spouse agree to split your gifts, you should file both of your individual gift tax returns together (that is, in the same envelope) to help the IRS process the returns and to avoid correspondence from the IRS.

 

The rest of it isn't that hard to follow but look at this link  ........it's lines 12-18 in the instructions.

 

jaoaoao32321
Returning Member

1

...No duh. I know that. Literally just asked a clarifying question and you answered a different question. I KNOW that the spouse submits a form also. If it's so easy why couldn't you just confirm or deny what I'm doing is right or wrong???? I do not need a repeat of what the instructions already say. 

martinmarks1919
Level 8

1

What do you need to be confirmed or denied? Are you hung up on some part of the form? Which part? You complete the first section and that's self explanatory with the spouses name and signature and all and THEN you put in $20k for you and $20k for your spouse on SCH A for the NET of $10k so when you add both together below you get $20k and then subtract your $15k exclusion. Mail both yours and your spous's in the same envelope. If there is a problem THEY WILL send you a letter and no big deal because you owe ZERO in taxes. You want to end up with each of you giving $5k worth of taxable gifts.....you each gave $20k and each have a $15k exclusion. Oh, and don't forget to subtract out that $15k annual excluded part either on the form.

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