If you’ve given significant gifts of money or property, you might need to file a gift tax return—even if you owe no gift tax. And in many cases, filing is simply a smart move that protects you later.
When You Must File
You’re required to file a gift tax return (Form 709) if you:
- Give any one person more than the annual exclusion amount ($19,000 in 2025)
- Elect to split gifts with your spouse
- Make a gift of a future interest (like a transfer to certain trusts)
- Front-load multiple years of 529 plan contributions
- Make specific gifts to your spouse that don’t qualify for the unlimited marital deduction
Why Most People Don’t Owe Gift Tax
Each person has a lifetime exemption of $13.99 million (for 2025). That means even if you exceed the annual limit, you likely won’t owe gift tax—your gifts just reduce your lifetime exemption.
Why Filing Still Matters
Even if no tax is due, filing a gift tax return starts the three-year statute of limitations for the IRS to question your valuations. Without a return, there’s no time limit. Filing also creates a record of your lifetime giving and remaining exemption.
Filing a gift tax return can save you from headaches down the road and ensure your estate plan stays clean and accurate.
If you’d like help determining whether you should file a gift tax return this year, contact us to discuss your tax strategy.