How does the IRS classify a single check given to spouses for gift tax reporting?
Ask Blue J any tax question, then go deeper. Follow up, add client-specific context, and explore the sources behind every answer with Blue J’s generative AI solution for tax research.
For federal gift tax purposes, when a single check is given to spouses (i.e., a married couple) as a gift, the IRS generally treats the gift as made one-half to each spouse, unless there is evidence to the contrary. This classification is important for determining whether the gift qualifies for the annual exclusion and for the application of the gift tax rules.
1. Key Legal Principles
- Gift to Spouses as Joint Tenants or Tenants by the Entirety:
- If a donor gives a check to a married couple (spouses) and the check is made payable to both, the IRS presumes that each spouse receives an equal interest in the gift, unless the facts show otherwise. This means the gift is considered as made one-half to each spouse for gift tax purposes.
- Annual Exclusion:
- The annual gift tax exclusion applies per donee. For 2025, the exclusion is $19,000 per recipient. If a donor gives a $38,000 check to a married couple, $19,000 is considered given to each spouse, and the entire gift may be covered by the annual exclusion (assuming no other gifts to either spouse that year).
- Gift Splitting Not Required:
- When a gift is made to both spouses, gift splitting under IRC § 2513 is not necessary because the gift is already considered as made to two separate individuals. Gift splitting is only relevant when a gift is made by one spouse to a third party, and both spouses wish to treat the gift as made one-half by each.
- Evidence to the Contrary:
- If the facts indicate that one spouse is intended to receive more than half of the gift, or if the spouses have different property rights under state law (such as in community property states), the allocation may differ. However, in the absence of such evidence, the default is an equal split.
2. Example
- If a donor writes a $30,000 check payable to "John and Jane Smith," the IRS will treat this as a $15,000 gift to John and a $15,000 gift to Jane. Each amount is compared to the annual exclusion to determine if any portion is subject to gift tax reporting.
Summary:A single check given to spouses is classified by the IRS as a gift of one-half to each spouse, unless the facts show a different intent or property interest. This allows the donor to apply the annual exclusion to each spouse separately, potentially avoiding the need to file a gift tax return if the amount given to each does not exceed the exclusion.
If you have a specific scenario (such as the amount of the check or the way the check is titled), please provide those details for a more tailored analysis.
Was this answer helpful?
What Blue J customers are saying
“We are excited to use Blue J to elevate the initial work product our team is able to produce."
"We’re incorporating Blue J to ensure our people are well-equipped with a research tool that delivers on both ease of use and quality of deliverable. It will save us a lot of time as a starting point, so we can focus our efforts on the analysis. Ultimately, it helps us get to the right answer, faster.”
"We’re incorporating Blue J to ensure our people are well-equipped with a research tool that delivers on both ease of use and quality of deliverable. It will save us a lot of time as a starting point, so we can focus our efforts on the analysis. Ultimately, it helps us get to the right answer, faster.”
"We had used Checkpoint for a long time but found it wasn’t particularly well-used in our practice."
"A lot of our practitioners would have to turn to Google to find what they were looking for, which of course isn’t ideal. Blue J is a real game-changer when it comes to this, since it combines the efficiency of Google with the authoritative tax materials our people really need to serve their clients best. At ELO, we pride ourselves on providing services that are focused on value for clients and exceeding their expectations. Adding Blue J to our toolbox will enable us to do just that, as we continue to evolve our service offerings to better serve our clients’ needs.”
"A lot of our practitioners would have to turn to Google to find what they were looking for, which of course isn’t ideal. Blue J is a real game-changer when it comes to this, since it combines the efficiency of Google with the authoritative tax materials our people really need to serve their clients best. At ELO, we pride ourselves on providing services that are focused on value for clients and exceeding their expectations. Adding Blue J to our toolbox will enable us to do just that, as we continue to evolve our service offerings to better serve our clients’ needs.”
"We find this tool to be a game-changer for us and our clients.”
“We had the opportunity to pilot some other AI solutions in the market, and found that the improvement over traditional search was limited - except in Blue J’s case, where the efficiency gain over traditional research methods is significant."
“We had the opportunity to pilot some other AI solutions in the market, and found that the improvement over traditional search was limited - except in Blue J’s case, where the efficiency gain over traditional research methods is significant."
“Blue J is an exciting technology because it enables the practitioner to remain in the driver’s seat of the analysis."
"Thoughtful functions are included to encourage and facilitate deeper analysis, not to replace or reduce it. We’ll continue to find new and impactful ways to leverage the technology, which has benefited our clients and staff alike. At RSM we strive to be compelling to our clients and to be digital by embracing new technologies to fulfill that promise.”
"Thoughtful functions are included to encourage and facilitate deeper analysis, not to replace or reduce it. We’ll continue to find new and impactful ways to leverage the technology, which has benefited our clients and staff alike. At RSM we strive to be compelling to our clients and to be digital by embracing new technologies to fulfill that promise.”
"We wanted to have a tool that people were using at all staff levels."
"We wanted something that lived up on their third screen - something that would be available and helpful to them every day. What we've found is it's been easy to get people to get into the habit of using Blue J because it helps people. Blue J allows us to quickly respond to client questions in a way that they can understand it, which helps us deal with the volume of client questions that come in. We were up and running very quickly with Blue J - within 5 minutes, our staff understood how this will be helpful, and the rest of the training program is refining prompting skills and building use cases and best practices."
"We wanted something that lived up on their third screen - something that would be available and helpful to them every day. What we've found is it's been easy to get people to get into the habit of using Blue J because it helps people. Blue J allows us to quickly respond to client questions in a way that they can understand it, which helps us deal with the volume of client questions that come in. We were up and running very quickly with Blue J - within 5 minutes, our staff understood how this will be helpful, and the rest of the training program is refining prompting skills and building use cases and best practices."
