How to Fill Out Form 709 Gift Tax Return for First-Time $60,000 Gift?

You're on the right track, but let me help clarify a few things about Form 709. For Part 2, you're dealing with the unified credit calculation. Since this is your first time filing, you'll use your full lifetime gift tax exemption amount, which for 2025 is $13.61 million (adjusted for inflation from previous years). For your $75,000 gift to your friend, you'll only need to report it because it exceeds the annual exclusion amount ($18,000 per recipient for 2025). The amount that counts against your lifetime exemption is $57,000 ($75,000 minus the annual exclusion of $18,000). When completing Part 2, enter your available unified credit on line 7. Don't worry - you won't actually owe any gift tax unless your lifetime taxable gifts exceed the exemption amount, which they haven't based on what you've shared. Make sure you complete Schedule A with the recipient's information and gift details. Also complete Schedule C to calculate the available unified credit correctly.

I went through the exact same nightmare with gift taxes last year after helping my niece buy a car. I was completely lost with the forms until I used taxr.ai (https://taxr.ai) to analyze everything. It literally saved me from a panic attack! The service scanned my draft 709 form, highlighted exactly where I was making mistakes in Part 2 (I was using the wrong year's unified credit amount), and showed me example text for each section. What I found super helpful was that it clearly explained which parts of the gift were taxable vs covered by the annual exclusion. For complex forms like the 709 that most of us only file once or twice in our lives, having something check your work before submitting to the IRS is such a relief.

Thanks everyone for the advice! I just tried taxr.ai after seeing it mentioned here and wow - what a lifesaver for my gift tax situation! I uploaded my draft Form 709 and it immediately caught that I was using the 2024 unified credit amount instead of the updated 2025 figure. It also pointed out that I completely missed filling out column C in Schedule A which apparently is super important for the calculation. The breakdown of which portion of my gifts counts toward the annual exclusion vs. lifetime exemption made everything crystal clear. I was honestly ready to pay an accountant $500+ to handle this for me, but now I'm confident enough to file it myself. Just wanted to share my experience in case anyone else is struggling with this form!

If you're still having trouble getting answers from the IRS about your Form 709 questions, try using Claimyr (https://claimyr.com). I spent TWO WEEKS trying to get through to an IRS agent about a gift tax question similar to yours, and the hold times were absolutely insane. With Claimyr, I got a callback from an actual IRS agent in about 45 minutes! They have this system that navigates all the IRS phone menus and waits on hold for you, then calls you when they get a real person. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with walked me through exactly how to complete Part 2 of Form 709 and confirmed I was calculating my remaining unified credit correctly. Definitely worth it when you need official clarification on something as important as gift taxes.

I feel like an idiot for being so skeptical about Claimyr! After posting that comment questioning if it was legit, I decided to try it myself since I was desperate for help with my gift tax questions. It actually worked exactly as described. I got a call back in about an hour, and they connected me directly to an IRS agent who specializes in gift taxes. The agent walked me through exactly how to report my gift of artwork (which was complicated because of appraisal issues). I spent THREE DAYS before that trying to get through on my own. Would call, wait on hold for 45+ minutes, then get disconnected. Over and over. This saved me so much frustration and I got the exact information I needed.

Something important that nobody mentioned yet - make sure you're using the CURRENT Form 709! The IRS updated it for 2025 and some of the line numbers and calculations are different from previous years. I filled out the entire wrong version last year and had to redo everything. Also, if you're married, look into gift splitting with your spouse (you check a box and you both file Form 709). It can help maximize your annual exclusions.

Quick question - do we have to file Form 709 electronically or can we still mail it in? I can't find a clear answer anywhere.

Just want to add a few important points that might help with your Form 709 situation! First, make sure you're reporting the gift in the year it was actually completed - so if you wrote the check in December 2024 but your friend deposited it in January 2025, it's a 2024 gift and should be reported on a 2024 Form 709. Also, since this was for medical expenses, double-check if any portion might qualify for the medical expense exclusion. If you paid medical providers directly (instead of giving cash to your friend), those payments wouldn't count as taxable gifts at all. But since you mentioned giving the money to your roommate directly, it sounds like the full amount over the annual exclusion will count against your lifetime exemption. One more tip - keep really good documentation of the gift (bank records, purpose, etc.) in case the IRS ever has questions. Medical gifts sometimes get extra scrutiny, so having a clear paper trail is super helpful. The 2025 filing deadline for Form 709 is April 15, 2026, so you have plenty of time to get it right. Better to take your time and do it correctly than rush and make mistakes!

I just wanted to chime in as someone who's been through this exact same situation! I had to file my first Form 709 two years ago for a large gift to help my sister with her business, and I was completely overwhelmed at first. One thing that really helped me was understanding that the Form 709 is really just a reporting form - you're not necessarily going to owe any tax unless you've exceeded that massive lifetime exemption ($13.61 million for 2025). Think of it more like letting the IRS know "hey, I made this big gift and here's how much of my lifetime exemption I used up." For your $75,000 gift, you'll report the full amount on Schedule A, but only $57,000 will actually count against your lifetime exemption (after subtracting the $18,000 annual exclusion). That still leaves you with over $13.5 million in exemption for future gifts! The hardest part for me was Part 2 - the unified credit calculation. But once I understood that I was just telling the IRS how much of my lifetime exemption I had left, it became much clearer. And don't stress too much about small mistakes - the IRS will usually just send you a correction notice if something minor is wrong rather than jumping straight to an audit. You're being smart by asking for help rather than just winging it. Good luck with your filing!

I went through this exact situation last year when I helped my nephew with his student loans! The most important thing to remember is that Form 709 is due by April 15th of the year following the gift, so you have time to get it right. A few key points that helped me: - Double-check you're using the 2025 version of Form 709 (the unified credit amounts change annually) - In Part 1 of Schedule A, describe the gift clearly - something like "Cash gift for medical expenses" - The taxable amount that counts against your lifetime exemption is $57,000 ($75,000 minus the $18,000 annual exclusion) - In Part 2, Line 7, you'll enter the full unified credit amount for 2025 Since this is your first Form 709, you don't need to worry about prior year calculations - just focus on getting the current year right. The IRS instructions can be confusing, but the basic concept is straightforward: you're just reporting that you made a large gift and tracking how much of your lifetime exemption you used. One tip - mail it certified mail with return receipt so you have proof it was delivered. And definitely keep copies of everything along with documentation about the gift purpose and timing. Don't stress too much - you're being responsible by filing properly, and the vast majority of gift tax returns don't result in any issues with the IRS!