Gift Tax

[mikelub]

Need a little help with gift tax.  My wife and I gave my son $100K for house down payment in late 2023. I have exceeded the $34,000 my wife and I can give to my son.  I have several questions:

1.When do I fill out IRS Form 709?  Fill out when I fill out my 2023 taxes?

2. Does Turbo Tax support this?

3. Do I need to fill out Form 709 separate from my regular return?

Thanks

[ScruffyCurmudgeon · Accepted solution]

GIFT TAX is not an Income Tax

1.When do I fill out IRS Form 709? Fill out when I fill out my 2023 taxes? 
Generally, it is advised that if you need to file Form 709, you should file prior to or at the same time as Form 1040.  In fact, Form 709 acts to reduce your Life-Long Exemption of the liability to Estate Tax.  Filing a Form 709 need not actually require you to pay at the time of filing the Gift Tax because until you have exceed that Exemption amount  you do not owe anything. . For 2024, the lifetime gift tax exemption is $13.61 million,

2. Does Turbo Tax support this?  NO!  Gift Tax has nothing to do with Income or Income Tax

3. Do I need to fill out Form 709 separate from my regular return? IF you mean by "separate return" yes, it is totally a different form

[DoninGA]

1. The Form 709 is due the same date as the 2023 federal tax return, April 15, 2024
2. TurboTax does not support Form 709
3. The Form 709 is separate from the federal return and is mailed to a separate address as noted in the Form 709 instructions

Go to this IRS website for the Form 709 and Instructions - https://www.irs.gov/forms-pubs/about-form-709

[cumminshaid]

Instructions for Form 709 Gift Tax state you should file it with your return. However, it's not supported electronically. May I submit my TurboTax Income Tax return electronically, then separately submit my Form 709 via snail mail?  Federally and State (Virginia)?

[RobertB4444]

Yes.  The 709 should not only go in separate from your income tax return it will go to a completely different address if you were mailing them both.  So efile your 1040 and mail your 709 and you'll be fine.

@cumminshaid 

[DoninGA]

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@cumminshaid wrote:

Instructions for Form 709 Gift Tax state you should file it with your return. However, it's not supported electronically. May I submit my TurboTax Income Tax return electronically, then separately submit my Form 709 via snail mail?  Federally and State (Virginia)?

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No, the instructions do not say the Form 709 is filed with the federal tax return - https://www.irs.gov/pub/irs-pdf/i709.pdf

When To File
Form 709 is an annual return.
Generally, you must file Form 709 no earlier than January 1, but not later than April 15, of the year after the gift was made.

Where To File
File Form 709 at the following address.
Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999

[cumminshaid]

Thank you. Last time I filled out a 709 in 2000 it had had to be returned with one’s income taxes. It would be great to send it in separately, I prefer to file my income taxes electronically these days