Who must file Form 709:
• The total value of all gifts made to the same person within the same calendar year exceeds $14,000.
• Your spouse gives one or more gifts to the same person that exceed $14,000 in value in the same calendar year and you and your spouse agree to “split” the gifts between the two of you.
• The total value of gifts made from a spouse who is a U.S. citizen made to a spouse who is not a U.S. citizen exceeds $143,000.
• You make a gift of a future interest to anyone during the course of the year.
• The person who makes the gift—not the recipient—must file a gift tax return and pay any tax owed.
• Gift tax is not owed until your cumulative taxable gifts exceed the $5.45 million exemption.
• IRS Form 709 is due on or before April 15 of the year following the year that you have made taxable gifts.
Examples of Gifts that are NOT taxable and do NOT require a Form 709:
• Gifts that are not more than the annual exclusion amount, $14,000 in 2016 (you can give this amount to any number of different recipients; you and your spouse can give $28,000 per year per recipient)
• Tuition, if paid directly to the school (other expenses related to education, such as books, supplies and living expenses, do not qualify for this exemption)
• Medical expenses paid directly
• Gifts to your spouse (if your spouse is a U.S. citizen)
• Gifts to a political organization for its use
• Gifts to certain charities