Yes. You can use the gift of more than $14,000 and apply it against your life time exemption. Your gift above the $14,000 is called a taxable gift because it exceeds the $14,000 annual exclusion, but you won't actually owe any gift tax unless you have exhausted your lifetime exemption amount.
You have a $5.49 million federal estate tax exemption for 2017, thanks to the 2010 Tax Relief Act.
Since you made a taxable gift (one in excess of the annual exclusion), you must file Form 709: U.S. Gift Tax return. The return is required even if you don’t actually owe any gift tax because of the $5.49 million lifetime exemption. The return is due by April 15 of the year after you make the gift—the same deadline as Form 1040. If you extend your 1040 to October 15, the extended due date applies to your gift tax return too.
If you’re married, you can’t file a joint gift tax return. Each spouse must file a separate return if he or she makes any taxable gifts. You can, however, choose to “split” gifts with your spouse. Making a split gift allows you to take advantage of your annual gift tax exclusion plus your spouse’s exclusion for a gift that is made entirely by you.
Among others, the following types of gifts are exempt from the federal gift tax so you can make unlimited gifts in these categories without any gift tax or estate tax consequences and without having to file gift tax returns:
- Gifts to IRS-approved charities
- Gifts to your spouse (assuming he or she is a U.S. citizen)
- Gifts covering another person’s medical expenses, as long as you make the payments directly to medical service providers
- Gifts covering another person’s tuition expenses, as long as you make payments directly to the educational institution. (Payments for room and board, books, and supplies don’t qualify for this exception, but you can cover those costs by making a direct gift to the student under the annual exclusion.)
https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N
