If I need to file Form 709 for gift tax, can I still e-file my federal taxes or do I have to mail everything?

You're in luck! You can absolutely e-file your Form 1040 federal tax return as usual and separately mail in your Form 709 Gift Tax Return. The two filings are completely independent of each other. Form 709 cannot be e-filed at all - it must be filed by paper regardless of how you file your income tax return. The IRS doesn't currently have the capability to accept electronic Form 709 submissions. So go ahead and e-file your 1040 for the faster processing and refund, then prepare and mail your Form 709 following the instructions on where to mail it based on your location. Just remember that both forms (your 1040 and 709) have the same filing deadline of April 15, 2025 (unless you file for an extension). So while you can submit them separately, they both need to be filed by the deadline.

After struggling with this exact situation last year, I found an amazing solution using https://taxr.ai to handle my gift tax questions. I had given a large gift to my nephew for college and wasn't sure how to handle the Form 709 while still e-filing my regular return. The tool analyzed my documents and clearly explained I could e-file my 1040 while separately mailing the 709. It even helped me understand how much of my lifetime exemption I was using. They have specific guidance for gift tax situations that made everything so much clearer than the confusing IRS instructions.

I wanted to follow up about my experience with https://taxr.ai after I initially questioned it. I decided to try it with my somewhat complicated gift tax situation (sold a property to my son below market value which counts as a partial gift). Honestly, I was impressed! It correctly identified that I needed Form 709, clearly explained I could still e-file my regular return, and walked me through exactly what portions counted as a gift. It even explained the GST implications I hadn't considered. For anyone dealing with gift tax questions, it's definitely worth checking out - way clearer than trying to interpret IRS instructions on your own.

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I want to publicly admit I was completely wrong about Claimyr. After dismissing it as a scam in my previous comment, my curiosity got the better of me and I tried it when I needed to ask about my Form 709 filing situation. I've NEVER been able to get through to the IRS gift tax department before - always endless hold times or disconnects. With Claimyr, I got connected to a knowledgeable IRS agent in about 25 minutes who answered all my questions about coordinating my e-filed return with my paper 709 form. Saved me hours of frustration and I got official guidance directly from the source. Definitely not a scam - it actually delivers what it promises.

Just wanted to add one important detail - make sure both your Form 1040 and Form 709 have original signatures on them! Even though you're e-filing the 1040, the system creates an electronic signature. But for the 709, you need a physical signature on the paper form. I made this mistake last year and had my gift tax return rejected, which created a whole headache.

Stupid question maybe but does anyone know where exactly to mail the Form 709? Is it the same address as where you'd mail a paper 1040?

Just to add another perspective - I had this exact same situation last year with a $20,000 gift to my son. The separate filing process worked perfectly fine. E-filed my 1040 in February and got my refund within 3 weeks as usual. Then I mailed my Form 709 about a month later (still well before the April deadline) and never had any issues. One tip I learned: when you're preparing your Form 709, double-check that you're using the correct annual exclusion amount for the tax year. For 2024 gifts, it's $18,000 per recipient (not $17,000 like it was in 2023). So in your case with the $23,000 gift, only $5,000 would actually count against your lifetime exemption, not $6,000. Small detail but it matters for accurate reporting!

Great question and glad you're planning ahead! Just wanted to emphasize what others have said - you're absolutely correct that you can e-file your 1040 and separately mail your Form 709. I did this exact thing two years ago when I helped my daughter with a house down payment. One additional tip that might help: when you're using your tax software to prepare your 1040, it might ask if you filed or need to file any other forms. You can indicate that you filed Form 709 separately, but this won't affect your ability to e-file the 1040. The software is just gathering information for completeness. Also, keep copies of both your e-filed 1040 confirmation and your mailed Form 709 (including certified mail receipt if you choose to send it that way) for your records. The IRS processes these independently, so having clear documentation of both filings can be helpful if any questions come up later.