How to File Form 709 (Gift Tax Return) Without a CPA
You helped your child buy a house or gave a large cash gift. Now you are terrified of the “Gift Tax.” Relax. Filing the form does NOT mean you have to pay taxes. It is usually just an informational report. Here is how to do it yourself.
Why You Probably Owe $0
Think of the Gift Tax as having two buckets.
| Bucket Name | Limit (2026 Est.) | Consequence |
|---|---|---|
| 1. Annual Exclusion | ~$19,000 / recipient | No Form Needed |
| 2. Lifetime Exemption | $13M+ (Total) | File Form 709 |
1. First $19,000 is free (Annual Bucket).
2. The remaining $31,000 spills over.
3. Does it trigger tax? NO. It just subtracts $31,000 from your $13 Million Lifetime Bucket. You still owe $0.
How to Fill Out Form 709
It is a standalone form. You mail it separately from your 1040.
Step 1: Download the Form
Go to IRS.gov and get the latest Form 709. (Do not use an old year’s version).
Step 2: Schedule A (The List)
This is the meat of the form.
Column A: Describe the gift (e.g., “Check #123 to John Doe”).
Column D: Donor’s Basis (What you paid for it – usually cash value).
Column F: Fair Market Value (The amount you gave, e.g., $50,000).
Step 3: The “Gift Splitting” Trick (Lines 12-18)
Are you married? You can combine your allowances!
Even if the check came from your account, you and your spouse can agree to “split” the gift.
Result: You can give $38,000 (2 x $19k) tax-free. Your spouse must sign the consent line on your Form 709.
Step 4: Calculate Tax (Part 2)
The math will guide you to subtract the $19,000 exclusion. The remainder reduces your “Unified Credit” (Lifetime Limit).
Line 27 (Balance Due): This should be $0.00 unless you are a multi-millionaire who already gave away $13M.
Pro Tip: Bypass the Limit Completely
Want to give more than $19,000 without filing any paperwork?
The “Direct Payment” Loophole
Don’t: Give your grandchild $50,000 for tuition. (Must file Form 709).
Do: Write a $50,000 check directly to “Harvard University.” (No form needed. Totally tax-free).