Hi, I'm Terry and I work for the Internal Revenue Service. If you give money or property to someone as a gift, you, the giver, may need to file a federal gift tax return. However, this is only necessary if your gift exceeds a certain dollar limit known as the annual exclusion amount. The IRS forms 709 instructions provide the annual exclusion amount for each tax year. If your gift surpasses this amount, it is likely that you will need to file the gift tax return. Nevertheless, there is a possibility that you may not owe any gift tax. There are certain gifts that you do not have to report at all. You may not require filing a gift tax return if the gift was given to your spouse, a charity, or if you directly paid someone's medical expenses or tuition to the facility or school. More information on this and other details can be found in publication 559, which is titled "Survivors, Executors, and Administrators." This publication has a section dedicated to gift taxes. To access it, visit irs.gov and search for publication 559.
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Video instructions and help with filling out and completing Where Form 3520 Taxable
