IRS Form 709 (United States Gift (and Generation-Skipping Transfer) Tax Return) reports taxable gifts and calculates any gift tax owed by U.S. citizens and residents.

For example, John Doe is a U.S. citizen and resident of Florida. In 2024, John makes a $20,000 cash gift to his friend, Jane Smith. John must file Form 709 to report the gift because the amount exceeded the annual exclusion for 2024. The cash gift is not income to Jane, so she does not report the gift as income on her 2024 Form 1040 (US Individual Income Tax Return).

Purpose of Form 709

  • Gift Tax Reporting. To report gifts that exceed the annual exclusion amount and to calculate any gift tax liability.
  • Generation-Skipping Transfer Tax. To report and compute the generation-skipping transfer (GST) tax for transfers to individuals two or more generations below the donor, such as grandchildren.

Who Must File

  • Individuals. U.S. citizens or residents who make gifts during the year that exceed the annual exclusion amount must file Form 709.
  • Annual Exclusion. The annual exclusion amount is adjusted each year. The annual exclusion is $17,000 per recipient for 2023 and $18,000 for 2024. If the total value of gifts to any one person exceeds the threshold in a given year, Form 709 must be filed.
  • Filing Deadline. Form 709 is due by April 15 of the year following the year in which the gifts were made. If the donor files for an extension on their income tax return (Form 1040), the extension applies to Form 709 as well.

Information Required

  • Donor Information. Full name, address, citizenship, and Social Security Number (SSN).
  • Donee Information (i.e., recipient of the gift). Full name, address, relationship to the donor, and the recipient’s social security number.
  • Gift Details. Description and value of the gifts, date of transfer, and the donor’s adjusted basis in the property.

Video Tutorials

Please visit our channel for several tutorials on Form 709 gift tax reporting:

Additional Information

Taxpayers looking for more information can view the Form 709 Instructions and visit the IRS website.