Gift Tax Return

Gift Tax

If you've given a gift worth more than the annual exclusion amount, you'll need to file a gift tax return. This is done using Form 709.

Generally, If you are the recipient of the gift, it is not considered taxable income.

Currently, the annual exclusion amount is $15,000 per person. This means that you can give gifts worth up to $15,000 to each person without triggering a filing requirement. If you give a gift that is valued at more than $15,000, you will need to file a gift tax return.
You will need to use Form 709 to file a gift tax return. This form is available on the IRS website.
When you file your gift tax return, you will need to include the following information:
The name, address, and Social Security number of the recipient
The date of the gift
The amount of the gift
A description of the gift
The fair market value of the gift (if it is not cash)
You will also need to sign the form and include your contact information.
If you fail to file a gift tax return when required, you may be subject to penalties. The IRS may assess a late filing penalty, as well as interest on the unpaid tax. In addition, if the IRS believes that you have intentionally failed to file a return, you may be subject to criminal penalties.