What do I need to know about gift tax returns?

What do I need to know about gift tax returns?

Gift tax returns are required when you give a gift exceeding the annual exclusion limit. In 2023, this limit is $17,000 per recipient.

What happens if I don't file a gift tax return?

If you don't file a gift tax return when required, you may face penalties and interest on any taxes owed.

Are there any exceptions to the gift tax?

Yes, there are exceptions, such as gifts to spouses, charitable donations, and payments for medical or educational expenses.

How do I file a gift tax return?

You file a gift tax return using IRS Form 709, which can be submitted electronically or by mail.