Gift question

Forum|Forum|3 years ago
November 16, 2022
2 replies
8 views

I have 2 questions related with gift tax form 709:

(a) Does turbotax help in filling for gift tax form 709, and

(b) If one saving 10K Ea for their child for 10 years and then pass on to their child total sum do we still have to file 709 or is Not Necessary (since it meets the amount limit for not filing)

Best answer by Anonymous_

a) No, TurboTax does not support Form 709.

b) If the total for the calendar year is $10k, then no 709 is required.

Anonymous_Answer

Level 15

a) No, TurboTax does not support Form 709.

b) If the total for the calendar year is $10k, then no 709 is required.

Opus 17

Level 15

If you give the child a lump sum of $100K, that must be reported, even though you "saved" $10K per year. The gift doesn't occur until the money is actually transferred.

There's nothing to be scared of by the reporting requirement, it doesn't cause audits or raise your taxes.

However, if you want to give a child $10K per year but not actually let them have control until they are more responsible, you might consider a Uniform Gift to Minors trustee account.

https://www.investopedia.com/terms/u/ugma.asp

Or, you can contribute money to a 529 educational savings account in your name, listing the child as the beneficiary. When the child goes to college, they can withdraw the money tax-free for expenses, and if they don't go to college or have leftover after college, they can withdraw it and pay the taxes and keep the rest. And you may get a state tax deduction for the contribution (but not a federal tax deduction).

You may want to talk to a financial advisor about the best way to help your children or grandchildren while incurring the lowest taxes.