Do You Need to File a Gift Tax Return in 2024?

If you made significant gifts to your children, grandchildren, or other heirs last year, it’s crucial to determine whether you need to file a gift tax return for 2024. In some cases, even if filing isn’t required, doing so may be beneficial.

Who Needs to File a Gift Tax Return?

The annual gift tax exclusion was $18,000 per recipient in 2024 (increasing to $19,000 in 2025). Generally, you must file a gift tax return (Form 709) if, during the tax year, you made gifts:

• Exceeding the $18,000-per-recipient exclusion (other than to your U.S. citizen spouse),

• That you wish to split with your spouse, utilizing your combined $36,000 annual exclusion,

• Exceeding the $185,000 annual exclusion for gifts to a noncitizen spouse,

• To a 529 college savings plan and wish to accelerate up to five years’ worth of annual exclusions ($90,000) into 2024,

• Of future interests, such as remainder interests in a trust, regardless of the amount, or

• Involving jointly held or community property.

Important: You’ll owe gift tax only if an exclusion doesn’t apply and you’ve used up your lifetime gift and estate tax exemption ($13.61 million in 2024). Some gifts require filing even if no tax is due.

When Filing Is Optional but Recommended

You don’t need to file a gift tax return for 2024 if your gifts consisted solely of:

• Annual exclusion gifts ($18,000 per recipient),

• Present interest gifts to a U.S. citizen spouse,

• Educational or medical expenses paid directly to a school or healthcare provider, or

• Political or charitable contributions.

However, filing is advisable if you transferred hard-to-value assets, such as artwork or interests in a family-owned business. Filing ensures adequate disclosure, triggering the statute of limitations and preventing the IRS from challenging your valuation beyond three years after filing.

Gift Tax Return Deadline

The deadline to file your 2024 gift tax return aligns with the income tax deadline: April 15, 2025. If you file for an extension, your gift tax return is due by October 15, 2025. However, if you owe gift tax, payment is still due by April 15, 2025, regardless of an extension.

Need Help Filing?

Determining whether you must (or should) file a gift tax return for 2024 can be complex. Contact us today for expert guidance on gift tax reporting and compliance.