How to File Gift Money on Your Taxes

If you gave someone money as a gift, then you may have to file it on your taxes. To file gift money on your taxes, you must complete a gift tax form. To qualify you must have given at least $13,000 to an individual or entity. That includes if you give that person, business or organization several small gifts totaling at least $13,000 or one gift. There is a way to file gift money on your taxes.

Things You'll Need

• Tax Form 709

Instructions

1. Obtain an IRS Form 709. This form can be obtained from a tax preparation place, local library or online. This form is needed before you can file gift funds on your taxes.

2. Calculate how much you have given.

3. Complete necessary and applicable parts of the form that apply to you. Put down each money total in the section of Schedule A of the form. Schedule A asks for information such as the date of the gift, the value of the gift and calculation details if your spouse contributed a gift as well. A part of the form referred to as split gifts allows your spouse to enter their information if they gave a monetary gift as well.

4. Fill out other parts of the form. Other parts to fill out if applicable including Schedule B. Schedule B asks about gifts from previous years that were not filed before.

5. Be sure to sign and date the form.

6. Mail or electronically file your taxes. You can mail the form to the following address.
   Department of Treasury
   Internal Revenue Service
   Cincinnati, OH 45999
   You can also electronically file it online at the IRS website at irs.gov.

Tips & Warnings

• Consult a CPA who has experience and knowledge of filing gift money taxes. The IRS recommends that you seek guidance if you are confused about filing or have questions.

• Look into getting software to help you.

• File before the April 15 deadline or file for an extension.

• There are a few exceptions to the rule. Do not file gift money if the gift was tuition or medical expenses you paid for someone. Also gifts to your spouse do not qualify. In addition, gifts to a political organization do not qualify.

• Complete the section for split gifts if your spouse gave gift money as well. Your spouse will need to sign the form as well.

References

• IRS: How to complete Form 709
• IRS: Where to file

Resources

• Find Accounting Software: BNA Estate & Gift Tax 709 Preparer
• IRS: Form 709; United States Gift (and Generation-Skipping Transfer) Tax Return