Gift Tax Exclusion for 2026 - Best Practices?

[Cris]

As I understand it in 2026 my spouse and I can each give $18,000 to our adult child.  I further understand that if we each stay below the $18,000 (so < $36,000) we do not need to file Form 709.  But what if we fund the gift from a joint account?  Does the IRS only get concerned if the total exceeds $36,000 or do they want to know how much came from spouse A and how much from spouse B?

Rather than using a joint account, perhaps we could use a Trust account (one account for Spouse A and a separate account for Spouse B -- each using our respective social security numbers (so, Spouse A Trust with SSN ending in x1234 and Spouse B Trust with SSN ending in x5678).  Not sure if it matters but we are both trustees on the two Trust accounts.  Perhaps this way we would not need to fill out Form 709 if Spouse A gifted <$18,000 and Spouse B gifted <$18,000 to the same adult child since it would be easier to determine how much was gifted from each spouse.

Thoughts/Comments?

Other options to accomplish this?

[DavidD66]

The Gift Tax Exclusion for 2026 is $19,000.  If you are married and use a joint account for gifts, the IRS generally views this as a 50/50 split, so you just write a check from a joint account for $38,000 and nothing needs to be reported (i.e. no gift tax return is necessary).  You can note in the memo that it is a joint gift. It's not necessary to go through the trusts.  If you're still concerned, each of you could write and sign a separate check from that joint account.  But again, that's not necessary. 

[Cris]

David, thanks for clarifying the correct amount for 2026.  Very helpful!

I typically don't write checks but rather do money link transfers into his checking account.  It is challenging for my son to get to a bank to deposit a check and I am also concerned about the mail losing the check.  My son does not leave near us.  Any other recommendations given this scenario?

[PatriciaV]

An electronic transfer/payment is acceptable, as long as you keep good records of the payment and how the amount was determined. A copy of the transfer/payment confirmation should be saved in your tax documents for the year (either hard copy or PDF).