Will Revisions Conservation Easement Pot Trust Psychiatric Advance Directive split annuity Estate Planning Terms Living Will Trust Protector LTC Expenses Incentive Trusts Gift Tax Return Family Business Succession Planning Special Needs Trust Elderly Parents In Your Estate Plan Beneficiary Designations Turn Down An Inheritance Power Of Attorney Inter Vivos Securities Laws DAPT College-Age Children Do Need An Estate Plan Estate Planning Documents Annual Gift Tax Exclusion CRT Name A Guardian Power To Remove A Trustee Living Trust Owning Assets Silent & Incentive Trusts Payable-On-Death Accounts Reduce your estate tax Executor Art Collection QTIP Trust portability Life insurance Portability Probate Original Will Estate Planning Estate Plan Estate Planning Estate Planning Asset Protection Strategies

The 2021 Gift Tax Return Deadline Is Approaching

April 18, 2022 is the deadline for filing your federal income tax return. Keep in mind that the gift tax return deadline is on the very same date. So, if you made large gifts to family members or heirs last year, it’s important to determine whether you’re required to file Form 709.

Filing Requirements
Generally, you must file a gift tax return for 2021 if, during the tax year, you made gifts that exceeded the $15,000-per-recipient annual gift tax exclusion (other than to your U.S. citizen spouse). (For 2022, the exclusion amount has increased to $16,000 per recipient or $32,000 if you split gifts with your spouse.)

You also need to file if you made gifts to a Section 529 college savings plan and wish to accelerate up to five years’ worth of annual exclusions ($75,000) into 2021. Other reasons to file include making gifts:

  • That exceeded the $159,000 (for 2021) annual exclusion for gifts to a noncitizen spouse
  • Of future interests (such as remainder interests in a trust) regardless of the amount
  • Of jointly held or community property

Keep in mind that you’ll owe gift tax only to the extent an exclusion doesn’t apply and you’ve used up your federal gift and estate tax exemption ($11.7 million for 2021). As you can see, some transfers require a return even if you don’t owe tax.

No Return Required
No gift tax return is required if your gifts for the year consist solely of gifts that are tax-free because they qualify as annual exclusion gifts, present interest gifts to a U.S. citizen spouse, educational, or medical expenses paid directly to a school or health care provider, or political or charitable contributions.

But if you transferred hard-to-value property, such as artwork or interests in a family-owned business, consider filing a gift tax return even if you’re not required to. Adequate disclosure of the transfer in a return triggers the statute of limitations, generally preventing the IRS from challenging your valuation more than three years after you file.

Be Ready
If you’re unsure whether you need to file a gift tax return or if you owe gift tax to the IRS, we can help. Act quickly, though, because the filing deadline is fast approaching.

Related Articles

Talk with the pros

Our CPAs and advisors are a great resource if you’re ready to learn even more.