Gift tax for buying Savings I bonds for a child

[User123120]

I would like to ask a question about gift tax for buying Savings I bonds for a child.

Scenario:

Mom set up a TreasuryDirect account for a child (under age 18) and this account is linked to mom’s account. Mom bought $10000 savings I bond for this child using this child account in 2022. Then mom bought another $10000 savings I bond as a gift for the same child in 2022 and delivered it to the child in 2023. The child’s dad agreed to give this gift to the child and the money used to buy the bond was from the joint account of the parents.

Questions:

1. Does this mean mom gave this child $20000 gift in 2022, or $10000 in 2022 and $10000 in 2023?
2. If it should be considered $20000 gift in 2022, can this gift be considered $10000 from mom and $10000 from dad automatically or a gift tax return Form 709 must be filed?
3. If a Form 709 need to be filed, should mom and dad file the Form 709 separately or they can just file one form? Is there a sample for filling Form 709 for this kind of case?

Thanks!

[PattiF]

No, you do not need to file Form 709 for the Gift Tax.

The gift was $20,000 in 2022 even if the second savings bone was physically delivered in 2023. It was purchased in 2022.

The $20,000 can be considered a joint gift. You are each entitled to the annual exclusion amount of $16,000 as a gift. Together, you could have given $32,000 to each donee for 2022.

[User123120]

@PattiF Thank you for your reply!

Does this mean we also don't need to file Form 709 if one bought $10,000 savings I bond as a gift for the spouse (non-citizen) in 2022 and delivered it in 2023?

Then do we need to file Form 709 if the fund for the $20,000 gift savings I bond to the child  was from an account which only one spouse is the account owner but both parents agree to give the gift?

[ShirlynW]

If you give any one person gifts valued at more than $16,000 in a year, it is necessary to report the total gift to the Internal Revenue Service. You make a gift when you give property, including money, or the use or income from property, without expecting to receive something of equal value in return. If you are the one who gave the gift, you do not report it either, unless it exceeds $16,000 per recipient for 2022 ($17,000 for 2023). In that case, you will file Form 709.

No, your mother does not have to file Form 709. She gave this child $10,000 in 2022 and $10,000 in 2023.