If a taxpayer gives a $20,000 gift to his son and the spouse also gives a $20,000 gift to the same son, is Form 709 required to be filed?
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If a taxpayer gives a $20,000 gift to his son and the spouse also gives a $20,000 gift to the same son in 2025, the filing requirements for Form 709 (United States Gift (and Generation-Skipping Transfer) Tax Return) depend on the application of the annual exclusion and the rules for gift splitting.
1. Annual Exclusion for 2025
- The annual gift tax exclusion for 2025 is $19,000 per donee per donor.
- This means each individual can give up to $19,000 to any one person in 2025 without the need to file Form 709, provided the gift is of a present interest.
2. Application to the Scenario
- Taxpayer gives $20,000 to son: $1,000 exceeds the annual exclusion.
- Spouse gives $20,000 to son: $1,000 exceeds the annual exclusion.
- Each parent has made a gift to the same donee (the son) that exceeds the annual exclusion by $1,000.
3. Gift Splitting
- Gift splitting allows a married couple to treat a gift made by one spouse as made one-half by each, but in this scenario, each spouse is making their own separate $20,000 gift to the same child, not splitting a single gift.
- If they do not elect to split gifts, each spouse is treated as making a $20,000 gift to the son.
4. Filing Requirement
- According to IRS rules, a gift tax return (Form 709) must be filed by any individual who gives more than the annual exclusion amount to any one donee in a calendar year, even if no tax is ultimately due because of the lifetime exclusion.
- Therefore, both the taxpayer and the spouse are each required to file a separate Form 709 for 2025, because each made a gift to the son that exceeds the $19,000 annual exclusion by $1,000.
5. Summary Table
6. Additional Notes
- If the gifts were $19,000 or less per donor, per donee, no Form 709 would be required.
- If the couple wanted to split a single $40,000 gift to the son (rather than each giving $20,000), they could elect gift splitting, and each would be treated as giving $20,000, still requiring a Form 709 because $1,000 would be over the exclusion for each.
7. Conclusion
Yes, Form 709 is required to be filed by both the taxpayer and the spouse, because each made a gift to the same son in 2025 that exceeds the $19,000 annual exclusion amount by $1,000.
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