Form 709 Federal Gift Tax Return Checklist for Tax Year 2024
Overview
Form 709 serves as the United States Gift and Generation-Skipping Transfer Tax Return for calendar year 2024, documenting taxable gifts and generation-skipping transfers made during the year. This form functions as both a reporting mechanism for current-year gifts and a vehicle for allocating lifetime GST exemptions, creating a cumulative tax history that directly impacts future gift tax calculations and eventual estate tax computations. The 2024 version introduced significant structural changes to the gift-splitting election process, Schedule A formatting, and spousal consent documentation requirements.
Critical 2024 Tax Year Amounts
For gifts made during calendar year 2024, the following dollar thresholds govern filing requirements and tax calculations:
Annual Exclusion: $18,000 per donee for gifts of present interest to any individual other than a spouse
Non-Citizen Spouse Exclusion: $185,000 for gifts to a spouse who is not a U.S. citizen, provided the gift qualifies for the marital deduction.
Basic Exclusion Amount: $13,610,000, representing the lifetime exemption available to each donor
Applicable Credit Amount: $5,389,80,0 calculated on the basic exclusion amount and reducing gift tax liability
GST Exemption: $13,610,000 available for allocation to generation-skipping transfers
Top Tax Rate: 40% applicable to taxable gifts and generation-skipping transfers
Filing Deadline: April 15, 2025, or the next business day if April 15 falls on a weekend or legal holiday
Extension Deadline: October 15, 2025, if an automatic extension is obtained through Form 4868 or Form 8892
Filing Requirements
You must file Form 709 for calendar year 2024 if any of the following apply:
- You made gifts to any one person other than your spouse totaling more than $18,000 during 2024, excluding gifts that qualify for political organization, educational, or medical exclusions
- You made any gifts of future interests, regardless of the gift amount
- You wish to elect gift splitting with your spouse for 2024 gifts, regardless of gift amounts
- You are applying deceased spousal unused exclusion amounts from a predeceased spouse
- You made generation-skipping transfers during 2024,, requiring GST exemption allocation
- You made gifts exceeding $185,000 to a non-citizen spouse
Transfers Not Subject to Gift Tax
The following transfers need not be reported on Form 709:
- Direct payments of tuition to qualifying educational organizations on behalf of any individual
- Direct payments of medical expenses to healthcare providers on behalf of any individual
- Transfers to political organizations described in section 527
- Transfers to specific exempt organizations under sections 501
- Gifts of present interest totaling $18,000 or less per donee during the calendar year
- Most gifts to your spouse who is a U.S. citizen, regardless of the amount
- Gifts to a non-citizen spouse within the $185,000 annual exclusion
Special Note for Nonresident Noncitizens
For tax year 2024, Form 709-NA became available for the first time. Nonresident noncitizens of the United States who made gifts of real or tangible property in the United States should file Form 709-NA instead of Form 709. Before 2024, nonresident noncitizens used the regular Form 709. The annual exclusion for nonresident noncitizens remains $18,000 per donee for 2024. Only the annual exclusion applies to gifts made by nonresident noncitizens; deductions and credits available to U.S. citizens and residents do not apply to such transfers.
Significant 2024 Form Changes
Part III Spousal Consent Restructuring
The most significant structural change for the 2024 Form 709 relates to the gift-splitting election and spousal consent procedures. Lines 12 through 18 from Part I in prior years were moved to a new Part III titled “Spouse’s Consent on Gifts to Third Parties” on the second page of the form.
The consenting spouse is no longer required to sign the donor spouse’s return directly. Instead, a separate written Notice of Consent must be prepared, signed, and dated by the consenting spouse and attached to the donor spouse’s return.
The Notice of Consent must include a statement indicating that the consenting spouse is electing to treat all gifts made to third parties as having been made one-half by each spouse. The consenting spouse must sign this Notice before the filing deadline of April 15, 2025. Each spouse who is filing returns should execute a Notice of Consent and attach it to each return. Failure to attach the Notice of Consent by the filing deadline may result in the loss of the election.
Schedule A Reorganization
Schedule A underwent reorganization for 2024, with new columns added to Parts 1, 2, and 3. New columns, designated as columns k, l, and m, were added to include checkboxes that identify whether each gift is a charitable gift, a deductible gift to a spouse, or involves a Section 2652 election. These new columns allow donors and preparers to mark specific characteristics of each gift directly on the form rather than through separate narrative statements or calculations.
Ten-Step Filing Checklist
Step 1: Determine Filing Requirement
Verify whether you made gifts exceeding $18,000 to any one donee during the calendar year 2024, made gifts of future interest of any amount, or are splitting gifts with your spouse. If all gifts were $18,000 or less to each donee and all were present interests, Form 709 is not required for 2024 unless other exceptions apply, such as gifts exceeding the annual exclusion to a non-citizen spouse or electing to split gifts.
Step 2: Complete Part 1 General Information
Enter your name, Social Security number or taxpayer identification number, current mailing address, legal residence at the time of the gift, and citizenship status. Indicate whether you died in 2024 and enter the date if applicable. Enter the total number of unique donees. Disclose whether you filed Form 709 in prior years and whether your address has changed since your last filing.
Step 3: Complete Part III for Gift Splitting if Applicable
If you are married and wish to split gifts with your spouse, complete Part III on the second page of Form 709. Check the appropriate boxes to indicate that you and your spouse consent to splitting all gifts made to third parties during 2024. Prepare a separate Notice of Consent that must be signed and dated by the consenting spouse. The Notice must include a clear statement that the consenting spouse elects to treat all gifts made to third parties as having been made one-half by each spouse. Attach the signed Notice of Consent to the return before the filing deadline.
Step 4: Gather Complete Gift Documentation
Compile descriptions of each gift, including the donee's's name and complete address, relationship to you if applicable, detailed property description, your adjusted basis in the property, date the gift became complete for tax purposes, and fair market value at the gift date. For securities, record CUSIP numbers. For closely held business interests, record the entity’s EIN. For gifts in trust, obtain the trust's EIN and either a copy of the trust instrument or a detailed description of the trust terms. For any gift claimed at a valuation discount due to lack of marketability, minority interest, or other reasons, prepare a detailed appraisal or valuation memorandum.
Step 5: Classify Gifts by Tax Treatment Category
Separate all 2024 gifts into three categories for Schedule A reporting. Part 1 includes gifts subject only to gift tax made to non-skip persons. Part 2 includes direct skips subject to both gift tax and generation-skipping transfer tax made to skip persons more than one generation below you. Part 3 includes indirect skips and transfers to trusts that may be subject to GST tax in the future. Gifts to skip persons typically include grandchildren or unrelated individuals more than 37.5 years younger than you.
Step 6: Complete Schedule A Parts 1, 2, and 3
List each gift in the appropriate part of Schedule A in chronological order. In column F, enter the value at the date of the gift. In column H, enter the net transfer, which for non-split gifts equals the value in column F. For the new columns k, l, and m, check the appropriate boxes to indicate whether each gift is a charitable gift, a deductible gift to spouse, or involves a section 2652 election. Total each part in column H. Include all gifts that exceed the annual exclusion or are gifts of future interest, even if ultimately excluded by other provisions.
Step 7: Complete Schedule A Part 4 Taxable Gift Reconciliation
On line 1, enter the total value of gifts from Parts 1, 2, and 3 column H totals. On line 2, enter total annual exclusions applicable to gifts, with a maximum of $18,000 per donee for 2024 for present-interest gifts. On line 3, subtract line 2 from line 1. On line 4, enter the deduction for gifts to a U.S. citizen spouse if a QTIP election was made or an unlimited marital deduction applies. On line 5, enter the charitable deduction if applicable. On line 11, enter the final taxable gifts amount. This becomes line 1 of the Part 2 Tax Computation.
Step 8: Complete Schedule B for Prior Period Gifts
Suppose you answered yes regarding prior Form 709 filings. Complete Schedule B to reconcile all prior-period taxable gifts. Enter the calendar year or quarter, the IRS office where the initial return was filed, and the applicable credit used on previous periods. This cumulative history is necessary to calculate the current tax liability on Part 2 using the Table for Computing Gift Tax in the instructions.
Step 9: Complete Schedule C for Deceased Spousal Unused Exclusion
If you are a surviving spouse whose deceased spouse died after December 31, 2010, and the executor elected portability on the deceased spouse’s timely filed Form 706, complete Schedule C. Enter your deceased spouse’s name and date of death.
Calculate the DSUE amount by entering your basic exclusion of $13,610,000 on line 1, adding any DSUE amount from your last deceased spouse on line 2, and totaling on line 4. Enter any DSUE amount you wish to apply to current gifts in Part 1 of Schedule C. Attach the first four pages of your deceased spouse’s Form 706 showing the portability election.
Step 10: Complete Schedule D for Generation-Skipping Transfers
If you made any direct skips reported in Schedule A Part 2 or indirect skips reported in Schedule A Part 3, complete Schedule D. In Part 1, list each direct skip by item number from Schedule A, enter the value, nontaxable portion, and net transfer. In Part 2, calculate the GST exemption available by starting with the $13,610,000 exemption for 2024, subtracting the exemption claimed in prior periods, determining the exemption available for this return, and allocating the exemption to current transfers.
In Part 3, calculate GST tax by determining the inclusion ratio, applying the 40% maximum rate, and computing tax due. GST exemption automatically allocates to indirect skips unless you attach an election out statement.
Step 11: Calculate Tax Liability in Part 2 Tax Computation
Enter taxable gifts from Schedule A Part 4 line 11 on Part 2 line 1. Enter prior period taxable gifts from Schedule B line 3 on line 2. Add lines 1 and 2 on line 3. Using the gift tax rate table in the instructions, compute the tentative tax on line 3 amount and enter on line 4. Compute tax on prior period gifts from line 2 and enter on line 5.
Subtract line 5 from line 4 and enter the balance on line 6. Enter applicable credit amount on line 7, which equals $5,389,800 for 2024 unless you claimed credit in prior years or are applying DSUE amounts from Schedule C. Subtract applicable credit from line 6 to determine net gift tax. Add any GST tax from Schedule D Part 3 on line 16 to determine the total tax due on line 17.
Step 12: Sign, Assemble, and File the Return
Sign and date Form 709 under penalties of perjury. If you are gift splitting, ensure that your spouse has signed the separate Notice of Consent and attach it to your return. If a paid preparer assisted, the preparer must sign and provide a PTIN. Attach all completed schedules in order: Schedules A, B if applicable, C if appropriate, and D if applicable.
Attach required documentation, including qualified appraisals or detailed valuation descriptions, copies of trust instruments or prior-year Schedule A descriptions for trust gifts, the deceased spouse’s Form 706 if claiming DSUE, and any election statements such as GST automatic allocation opt-outs or qualified tuition program five-year elections.
Mail the original signed return to the Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999. If using a private delivery service, mail to Internal Revenue Service, 333 W. Pershing Road, Kansas City, MO 64108. File by April 15, 2025, or the next business day if April 15 falls on a weekend or legal holiday.
Special Considerations
Adequate Disclosure: To begin the statute of limitations, your gift must be adequately disclosed. This requires a complete Form 709, which must include a description of the property, what was received in return, the identity and relationship of the person receiving the gift, the trust EIN, and the terms (if applicable), along with either a qualified appraisal or a clear description of how the value was determined that
Valuation Discounts: If any reported value includes discounts, answer yes on Schedule A and attach an explanation detailing the discount type, basis, and amount. Substantial valuation understatements occur when the reported value is 65% or less of the actual value, triggering 20% penalties. Gross valuation understatements occur when the reported value is 40% or less of the actual value, triggering 40% penalties.
Extensions: To extend filing time, use Form 4868 or Form 2350 for income tax extensions, which automatically extend gift tax return filing. Alternatively, file Form 8892 specifically for gift tax extensions. Extensions do not extend the time to pay tax; payment is due by the original April 15 deadline to avoid interest and penalties.
Joint Returns Prohibited: Married couples may not file joint gift tax returns. Each spouse must file a separate Form 709 reporting their gifts and, if gift splitting is elected, their share of the split gifts.
Qualified Tuition Programs
If you contributed more than $18,000 to a qualified tuition program on behalf of any one person during 2024, you may elect to treat up to $90,000 of the contribution as if made ratably over five years beginning in 2024. To make this election, check line A at the top of Schedule A and attach an explanation that includes the total amount contributed per individual beneficiary, the specific amount for which the election is being made, and the name of the individual for whom the contribution was made.
Conclusion
Filing Form 709 for tax year 2024 requires careful attention to the $18,000 annual exclusion per donee, the $13,610,000 basic exclusion amount, the $185,000 annual exclusion for non-citizen spouses, and comprehensive documentation of all reportable gifts. The 2024 form introduced significant procedural changes, particularly regarding the gift-splitting election and spousal consent documentation through the new separate Notice of Consent requirement.
Schedule A's reorganization with new checkbox columns necessitates meticulous attention to accurately identify all applicable characteristics of each gift. Proper completion of all applicable schedules, adequate disclosure of gift values, and timely filing by April 15, 2025, ensure compliance with federal gift tax reporting requirements and preserve your ability to utilize lifetime exemptions efficiently.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
