What Is IRS Form 709?

Form 709 is the United States Gift (and Generation-Skipping Transfer) Tax Return. You file it when you give gifts to any one person that exceed the annual gift tax exclusion in a given year. The gift tax is designed to work in tandem with the estate tax, preventing people from avoiding estate tax simply by giving everything away before they die.

The Annual Exclusion

Each year, you can give up to a set amount to any number of people completely tax-free without filing Form 709. This annual exclusion amount is adjusted for inflation — for 2024, it's $18,000 per recipient. You can give $18,000 to your child, $18,000 to your friend, $18,000 to anyone you choose, and none of it requires a gift tax return as long as no single person receives more than $18,000 from you.

When You Must File

If you give more than the annual exclusion amount to any one person in a year, you must file Form 709. This doesn't necessarily mean you owe gift tax — it just means you're using part of your lifetime exemption. The lifetime gift and estate tax exemption is very high (over $13 million per person in 2024, though it's scheduled to decrease after 2025). Most people who file Form 709 won't actually owe any gift tax.

Spousal Gifts

Gifts to a U.S. citizen spouse are generally unlimited and don't require filing Form 709. Gifts to a non-citizen spouse are subject to a higher annual exclusion (adjusted annually) before reporting is required.

529 Superfunding

One planning strategy involves front-loading up to five years of annual exclusion gifts into a 529 college savings account in a single year. If you elect this on Form 709, you can contribute up to $90,000 (for 2024) without using any lifetime exemption, as long as you make no other taxable gifts to that person during the following four years.

When Form 709 Is Due

Form 709 is due April 15 of the year after the gift is made. If you file for an extension on your income tax return using Form 4868, that automatically extends the Form 709 deadline too.