Gift tax returns are due by April 15 of the year after you give the gift, the same important date as your income tax return

If you give money or property worth more than the annual exclusion amount, you must file Form 709 (United States Gift Tax Return) with the IRS. The important date is April 15 of the following year — the same day your income tax return is due. You can request an extension to October 15 using Form 4868, which extends both your income tax and gift tax important date together.

The annual exclusion amount changes each year. For 2024, you can give up to $18,000 per person without filing. For 2025, the amount is $18,000 again. These limits explore per recipient, so you can give $18,000 to multiple people without triggering a return requirement. Married couples can combine their exclusions, allowing $36,000 per recipient in 2024 and 2025.

Filing Form 709 does not mean you owe tax. The form straightforward reports gifts that exceed the annual limit. The IRS uses it to track whether you have used up your lifetime gift and estate tax exemption, which is separate from owing tax in any given year.

Key Takeaways

  • Form 709 is due April 15 of the year after you make a gift over the annual exclusion amount ($18,000 per person in 2024 and 2025).
  • Filing the form does not mean you owe tax — it reports the gift to the IRS and tracks your lifetime exemption.
  • You can extend the important date to October 15 using Form 4868, which covers both income tax and gift tax returns.
  • Married couples can give twice the annual exclusion amount per recipient without filing, as long as they both agree to split the gift.
  • Gifts to spouses who are U.S. citizens and gifts to charities do not count toward the limit and never require Form 709.

What triggers the filing requirement

You must file Form 709 if you give more than the annual exclusion to any one person in a calendar year. The exclusion applies per recipient, not per gift. If you give $10,000 in January and $9,000 in December to the same person, you have given $19,000 total and must file.

Certain gifts do not count toward the limit. Gifts to your spouse (if your spouse is a U.S. citizen) have no limit. Gifts to charities have no limit. Tuition or medical expenses paid directly to the school or provider do not count, even if they exceed the annual amount. Direct payments for someone else's education or medical care are treated separately from regular gifts.

Gifts of future interests — such as the right to use property starting in five years — also trigger filing requirements even if the value is small. Present interests (the ability to use or enjoy something now) are treated differently from future interests under IRS rules.

How to file Form 709

You file Form 709 with your federal income tax return on April 15. If you file your income tax return early, you can file Form 709 at the same time. If you do not file an income tax return that year (because your income is below the filing threshold), you still must file Form 709 separately by April 15.

Form 709 requires the recipient's name, address, and Social Security number or tax ID. You list each gift separately, the date given, the fair market value on the date of the gift, and the relationship to the recipient. For property, you must determine fair market value — what a willing buyer would pay a willing seller on that date.

You can file Form 709 electronically through tax software or a tax professional, or print and mail it to the IRS address listed in the form instructions. The IRS does not have a separate online portal for gift tax returns; they are filed as part of your tax filing package.

The difference between filing and owing tax

Filing Form 709 is a reporting requirement, not a payment requirement. Most people who file do not owe gift tax in that year. Instead, the form notifies the IRS that you have used part of your lifetime exemption.

The lifetime exemption is the total amount you can give away over your entire life before owing federal gift or estate tax. For 2024, the lifetime exemption is $13.61 million per person. For 2025, it is $13.99 million. These amounts are high enough that most people never owe gift tax, even if they file multiple Form 709 returns.

The lifetime exemption is tied to your estate tax exemption. When you die, the IRS uses the same exemption to determine whether your estate owes tax. Filing Form 709 during your life reduces the exemption available to your estate after you die. This matters only if your total gifts plus your estate value exceed the exemption at the time of death.

Extensions and late filing

If you cannot file by April 15, you can request an automatic extension to October 15 using Form 4868 (process for Automatic Extension of Time to File U.S. Individual Income Tax Return). This extension covers both your income tax return and Form 709 if you file them together.

An extension gives you more time to file, but not more time to pay. If you expect to owe gift tax (which is rare), you should pay by April 15 even if you file late. Paying on time avoids interest and penalties.

If you file Form 709 late without requesting an extension, the IRS may assess penalties. The penalty for late filing is usually 5 percent per month of any tax owed, up to 25 percent. If no tax is owed, penalties are smaller or waived if you have reasonable cause for the delay.

State gift tax and reporting

Only the federal government has a gift tax. No state has a gift tax, though some states have estate taxes that work similarly. You do not file a separate state form for gifts unless your state has an estate tax and your estate may be large enough to trigger it.

A few states — Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington — have estate taxes. These explore to your total estate when you die, not to gifts you make during your life. Gifts reduce the size of your taxable estate, which can lower estate tax owed by your heirs.

Common situations and filing requirements

If you give your child $25,000 in one year, you must file Form 709. You have exceeded the $18,000 annual exclusion by $7,000. The $7,000 counts against your lifetime exemption, but you do not owe tax unless your total lifetime gifts exceed $13.99 million (in 2025).

If you and your spouse give $36,000 to your child together, you do not file. Each of you gave $18,000, which is exactly the annual exclusion. This works only if you both agree to split the gift and file a joint return, or if you each file separately and both report the split on your individual returns.

If you forgive a loan to a family member, the forgiven amount may be treated as a gift. If the loan had no written terms and no interest, the IRS may view the entire amount as a gift from the start. If the loan was properly documented with interest, only the forgiven interest counts as a gift.

Frequently Asked Questions

What happens if I miss the April 15 important date?

The IRS may assess penalties for late filing, typically 5 percent per month of any tax owed, up to 25 percent. If you owe no gift tax, penalties are usually smaller. Request an extension to October 15 using Form 4868 if you cannot file on time.

Do I have to file if I give less than the annual exclusion?

No. If all your gifts to each person stay under $18,000 in 2024 or 2025, you do not file Form 709. Gifts to spouses (U.S. citizens) and charities never require filing, regardless of amount.

Can I file Form 709 before I give the gift?

No. You file Form 709 in the year after the gift is made, reporting gifts that occurred during the previous calendar year. You cannot file in advance.

Does filing Form 709 mean the IRS will audit me?

Filing Form 709 does not trigger an audit. The form is a routine reporting document. The IRS uses it to track lifetime exemption usage, not to flag returns for examination.

What if I give cryptocurrency or stock as a gift?

The fair market value on the date of the gift counts toward the annual exclusion. For cryptocurrency, use the price on the date you transfer it. For stock, use the closing price on that date. You must report the value on Form 709 if the total gift exceeds the annual exclusion.