A Comprehensive Guide to Filing a Form 709: Gift and GST Tax Return

TLDRLearn how to file a Form 709, which is a gift and GST tax return. Understand the circumstances under which you need to report charitable contributions and the annual gift tax exclusion. Follow step-by-step instructions on filling out the form and computing the gift tax. No tax is owed if the applicable credit amount is higher than the taxable gifts.

Key insights

📝Form 709 is filed by US persons who make taxable gifts during the year.

💰The annual gift tax exclusion for 2023 is $117,000 per donor per recipient.

💝Gifts to tax-exempt organizations and certain educational and political contributions are not subject to gift tax reporting.

💼Form 709 should be accompanied by Form 4868 if an extension is filed for Form 1040.

💳Gifts of cash and property are reported on Schedule A of Form 709.

Q&A

Who needs to file Form 709?

—US persons who make taxable gifts during the year need to file Form 709.

What is the annual gift tax exclusion for 2023?

—The annual gift tax exclusion for 2023 is $117,000 per donor per recipient.

What gifts are not subject to gift tax reporting?

—Gifts to tax-exempt organizations, educational expenses, political contributions, and certain medical expenses are not subject to gift tax reporting.

What should be filed along with Form 709 if an extension is filed for Form 1040?

—Form 4868 should be filed along with Form 709 if an extension is filed for Form 1040.

Where are gifts reported on Form 709?

—Gifts of cash and property are reported on Schedule A of Form 709.

Timestamped Summary

00:02In this video, we will go over a sample Form 709, which is a gift and GST tax return.

00:11Form 709 is filed by US persons who make taxable gifts during the year.

01:41Gifts to tax-exempt organizations, educational expenses, political contributions, and certain medical expenses are not subject to gift tax reporting.

02:29Form 709 should be accompanied by Form 4868 if an extension is filed for Form 1040.

06:07Gifts of cash and property are reported on Schedule A of Form 709.

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