Most people never have to pay gift taxes, but they still may be required to file gift tax returns with the IRS. Such filings can be a burden, but they can also provide important benefits.

What Is a Gift Tax Return?

IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, must be filed by the person who makes a taxable gift (the donor), not the gift recipient (the donee).1

Donors who file gift tax returns rarely have to pay any gift tax. Rather, Form 709 is the reporting mechanism for the IRS to track how much a taxpayer has given during their lifetime and how much of their lifetime estate and gift tax exemption remains.

Once a taxpayer uses up their lifetime exemption, any additional gifts are subject to the gift tax. For 2025, the lifetime exemption amount is $13.99 million per individual and $27.98 million per married couple.2

When You Need to File a Gift Tax Return

Not all gifts have to be reported on Form 709. You are required to file a gift tax return only if you make a taxable gift during the year,3 and if any of the following applies.4

1. You Exceed the Annual Gift Tax Exclusion

You must file a gift tax return if you give any individual during the year more than the annual gift tax exclusion. For 2025, this is $19,000. For example, you can give five people $19,000 each and not file a gift tax return. But if you give one person $20,000, you’ll have to file a return.

2. You Make Gifts ... Log in to view full article.