Help with Form 709 Gift Tax Return - Credit Amount Question for $60k Gift

I help folks with gift tax returns frequently. For Part 2 of Form 709, you're on the right track, but there's a slight misunderstanding. The lifetime gift tax exemption for 2023 is $12.92 million (or $25.84 million for married couples who split gifts), not $4.5M. This is the amount you can give throughout your lifetime before actually owing gift taxes. Since this is your first time filing Form 709 and you've never used any of your lifetime exemption before, you'd enter the full available credit amount. The $60,000 gift will use some of your lifetime exemption (specifically the amount over the annual exclusion of $17,000), but you won't owe any actual tax unless you've exceeded the lifetime limit. Make sure you complete Schedule A to report the gift details and then carry those amounts to Part 1 of the form. Part 2 will calculate how much of your lifetime exemption you're using with this gift.

After struggling with gift tax reporting myself, I discovered https://taxr.ai and it was a game-changer. I uploaded my draft 709 form and got detailed feedback pointing out exactly where I made mistakes on the credit amount section. The AI guided me through Part 2 line by line and explained which numbers should go where based on my specific situation. What I really appreciated was that it explained WHY each section needed specific information rather than just telling me what to put. For large gifts that might impact your lifetime exemption, having that extra verification before submitting to the IRS gave me peace of mind.

Update on my gift tax situation: I decided to try https://taxr.ai despite my initial skepticism, and I'm honestly impressed. I uploaded my partially completed 709 form and it immediately identified that I was using an outdated exemption amount (I was still using the 2022 figure). It walked me through the correct calculations for Part 2 and explained how to account for my previous gifts. The analysis pointed out that I had incorrectly calculated my available exemption and showed me exactly which line I needed to correct. What I found most helpful was the explanation of how taxable gifts from previous periods affect current calculations. Definitely worth checking out if you're struggling with Form 709!

After trying for DAYS to get through to the IRS about a Form 709 question, I found https://claimyr.com and omg it actually worked! I was super desperate because I had questions about how to report a business interest I gifted last year that none of the online guides covered. Used their service (you can see how it works here: https://youtu.be/_kiP6q8DX5c) and got connected to an IRS agent in about 20 minutes. The agent walked me through exactly how to calculate my remaining unified credit after this gift and confirmed I was filling out Schedule A correctly for a non-cash gift. Saved me from potentially making a huge mistake on my lifetime exemption calculation. If you have gift tax questions that aren't covered in basic guides, actually talking to the IRS is so worth it.

I'm back to admit I was completely wrong about Claimyr. After posting my skeptical comment, I had another frustrating morning trying to reach the IRS about my gift tax questions. Kept getting disconnected after 45+ minutes on hold. Finally gave in and tried the service. It worked EXACTLY as advertised. I got a call back when an IRS agent was on the line ready to talk. The agent answered all my questions about how to report multiple gifts to the same person and confirmed I was calculating my remaining exemption correctly. Saved me hours of hold time and frustration. For anyone struggling with Form 709 questions that only the IRS can answer - this is absolutely worth it. Completely changed my opinion.

Pro tip from someone who's filed multiple 709s: Make sure you're using the right year's form! The lifetime exemption amount changes yearly, and using outdated forms is a common mistake. For 2023, the lifetime gift tax exemption is $12.92 million per individual. Also, don't forget to check if any of your gifts qualify for the annual exclusion ($17,000 per recipient for 2023). Only amounts above this threshold count against your lifetime exemption. And keep copies of ALL your 709 forms forever - you'll need them for reference when you file in future years and eventually for estate tax purposes.

Has anyone used TurboTax to file Form 709? I'm trying to figure out if their Premier version actually handles gift tax returns properly or if I should just do the paper form. The software costs so much and I don't want to pay if it can't handle this form correctly.

Just wanted to share my experience since I was in a very similar situation last year. I gave my sister $65,000 for her business startup and was completely lost on Form 709. The key thing that helped me was understanding that Part 2, Line 4 is where you enter your AVAILABLE unified credit, not the total lifetime exemption amount. Since this was my first gift over the annual exclusion, I entered the full unified credit amount of $5,113,800 (which corresponds to the $12.92 million exemption). The taxable gift amount ($60,000 - $17,000 annual exclusion = $43,000) gets calculated in Part 1, and then Part 2 figures out how much of your credit you're using. One mistake I almost made was forgetting to attach Schedule A with all the gift details. Make sure you complete that first before moving to the main form. The IRS needs to see exactly what you gave, to whom, and when. Good luck with your filing!