Question

Does the donor of a gift exceeding the 2024 $18,000 annual exclusion have to pay taxes on the amount exceeding the annual exclusion if less than the donor's lifetime cap?

Forum|Forum|1 year ago
March 10, 2025
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TurboTax Online

No, the donor doesn't have to pay taxes if they haven't reached the lifetime exemption, but they do need to file a gift tax return. What you need to file is: Form 709: US Gift (and Generation-Skipping Transfer) Tax Return. Keep in mind, married couples can double the $18,000 and count the gift as a joint gift.

Here is an article you may find helpful: The Gift Tax Made Simple

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flsaundersAuthor

Thank you! The article is helpful. I filled out Form 709 and it's confusing because under Part II, Tax Computation, line 19 shows a "balance due" amount of approx. $24,000. This is the first and only time I've filed a Gift Tax Return, so because I'm nowhere near the $13 million limit, I guess this amount is just charged against my limit and I am not obligated to pay taxes on that amount. Is that correct? I will not receive a tax bill from the IRS?