However, although this election may keep you from having to pay tax, you'll still have to file a gift tax return in order to claim it. Other exclusions also keep you from having to file Form 709.

Still, filling out Form 709 can get complicated. This article will walk you through the process step-by step. It’ll also help you determine if you need to fill out a Form 709 in the first place.

Generally speaking you only need to file a gift tax form when you exceed the annual $11,000 tax-free gift limit. But it's also prudent to send in that Form 709 every time you make a transaction ...

In 2025, with a $13.99 million exemption, you’d only pay gift tax on $1.01 million. Reminder: Filing Form 709 doesn’t mean you owe tax — it just tracks how much of your exemption you’ve used.

What If You Exceed the Limit? Let’s say you give $25,000 to your niece in 2025. You’d need to file Form 709 and report the excess $6,000. That $6,000 gets subtracted from your lifetime exemption.

Can a gift tax return be filed late? Yes. To request an automatic six-month extension to file Form 709, you can file Form 8892.

Filing Form 709 Gift tax returns are generally due on April 15 in the year following the gift, so you can make it part of your general tax preparation.

However, although this election may keep you from having to pay tax, you'll still have to file a gift tax return in order to claim it. Other exclusions also keep you from having to file Form 709.