The general rule is that any gift is a taxable gift, however, there are many exceptions to this rule.

Generally, the following gifts are not taxable gifts:

  • Gifts, excluding gifts of future interests, that are not more than the annual exclusion for the calendar year,
  • Tuition or medical expenses you pay directly to a medical or educational institution for someone,
  • Gifts to your spouse,
  • Gifts to a political organization for its use, and
  • Gifts to charities

The gift exclusion for 2006 through 2008 was $12,000 for each individual you chose to give a gift. The exclusion was $13,000 for 2009 through 2012. For 2013 and 2014, the exclusion has increased to $14,000.

Please see IRS Publication 559 Introduction to Estate and Gift Taxes for more information regarding the Gift Tax.

TaxACT supports the individual tax return, but does not support the gift tax return on Form 709. This is a separate return from the individual tax return (Form 1040).

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