Do we both have to file a 709 tax form if our gift is under $34K?

The IRS doesn't automatically assume gifts from joint accounts are split between spouses. For the $30K gift to be considered a $15K gift from each of you (thus staying under the annual exclusion), you actually need to explicitly "elect" to split the gift. This election is made by filing Form 709 where both spouses consent to gift-splitting. Ironically, this means you would need to file the very form you're hoping to avoid. One spouse files Form 709 reporting the full gift amount and both spouses must sign to indicate consent to split the gift. If you don't file Form 709 with the election, the IRS would generally attribute the entire gift to whoever actually owned the funds or had primary control over the account. For joint accounts, this can get complicated without clear documentation.

After struggling with a similar situation last year, I found taxr.ai (https://taxr.ai) incredibly helpful for navigating gift tax rules. I uploaded our account statements and gift details, and it analyzed everything to tell me exactly what forms we needed to file. It showed me that even with a joint account, we needed to file Form 709 to properly split the gift between me and my husband. The analysis explained why the IRS doesn't automatically assume split gifts from joint accounts, which saved us from making a major mistake. It even showed me exactly which sections of the form needed to be completed.

I have to admit I was wrong about taxr.ai! After my skeptical comment, I decided to try it for my own situation (gifting a partial ownership in a rental property to my kids). It clearly showed me that I needed to file the 709 AND provided the exact sections where I needed to report the split gift consent with my spouse. The tool even identified a special valuation issue with my rental property gift that I hadn't considered. Saved me from potentially significant reporting errors. And it explained everything in plain English - really made the whole gift tax thing way less intimidating. Definitely worth checking out if you're dealing with gift taxes.

If you're still struggling with Form 709 and need to talk to someone at the IRS directly (which I highly recommend), good luck getting through their phone system. After trying for WEEKS to talk to someone about a similar gift tax situation, I finally used Claimyr (https://claimyr.com) and it was a game-changer. You can see how it works here: https://youtu.be/_kiP6q8DX5c They got me connected to an IRS gift tax specialist in under 20 minutes when I had been trying for days on my own. The agent confirmed that yes, we needed to file Form 709 to properly split gifts from our joint account, but also gave me some specific guidance for our situation that saved a ton of headache.

I owe everyone an apology - especially to the person recommending Claimyr. After dismissing it as a scam, I was desperate enough to try it when facing an urgent gift tax question about my mother's estate. Not only did it work, but I was connected to an IRS specialist in 15 minutes after trying unsuccessfully for over a week on my own. The agent clarified that for my situation, I DID need to file Form 709 even though the gift was slightly under the annual exclusion amount because of a special rule about future interests. Would have completely messed this up without getting proper guidance. My sincere apologies for the skepticism - this service is legitimate and incredibly valuable if you need to actually speak with someone at the IRS.

Tax attorney here - just to add a bit more context: The gift splitting election on Form 709 is often misunderstood. Even though you're filing the form, you won't owe any gift tax if the split amount is under each person's annual exclusion amount ($17,000 per recipient in 2023, $18,000 in 2024, and likely $19,000 in 2025 based on inflation adjustments). The form is purely informational in this case - it's how you formally elect to split the gift. Without this election, the entire gift is attributed to one spouse, which could push you over the exclusion amount.

Has anyone used a joint check to make their gift? My husband and I want to gift $32K to our daughter for a house down payment, and we'll write a check from our joint account. Will this make it more obvious that it's intended as a split gift, or do we still need to file the darn 709?

Just went through this exact situation last month! We gifted $28K to our son from our joint savings account and I was hoping we could avoid the paperwork too. Unfortunately, what everyone else is saying is correct - you absolutely need to file Form 709 even when the gift comes from a joint account. The key thing I learned is that the IRS doesn't look at WHO owns the account, but rather WHO is making the gift election. Without filing Form 709 with both spouses consenting to split the gift, they would attribute the entire $30K to whoever signed the check or initiated the transfer. That would put you over the $17K individual limit and could trigger gift tax implications. The good news is that Form 709 isn't as scary as it sounds when you're just doing a gift-splitting election. We used a tax preparer but honestly, it's mostly just basic information about you, your spouse, and the gift details. No gift tax owed since $15K each is under the annual exclusion. One tip: make sure you keep good records of the gift (bank statements, check copies, etc.) because you'll need those details for the form. The IRS wants to know the exact date and amount of the gift.