Gift tax center

Example 1

John Smith contributes $20,000 during the year 2013 to a 529 plan for his son, Stephen, and $10,000 for his daughter, Susan. During that same year, Mary Smith (John’s wife) makes no contributions to a 529 plan for either child. John and Mary make no other cash or property gifts to their children during the year.

If Mary consents to split gifts with John, each is considered to have made a $10,000 gift to Stephen and a $5,000 gift to Susan. Since these gifts are below the $14,000 annual exclusion limit for 2013, John and Mary will have no taxable gifts to report on Form 709. However, John must file the gift tax return and Mary must indicate her consent to split gifts on John’s return. (Mary need not file her own Form 709, since her own gifts did not exceed $14,000 for any donee, and the effect of splitting gifts with her husband did not create a gift above the $14,000 exclusion amount.)

See Filled-In Form 709 HERE.

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Ameriprise Financial instructions

Consult with your office/branch manager for instructions.

Commonwealth Financial instructions

Commonwealth Financial Advisors, you will find your portal on CommunityLink in the Financial Planning Playbook under Education Planning Tools.

LPL Financial instructions

Visit the Education Planning page in the LPL BranchNet Resource Center to access your portal.

Morgan Stanley instructions

Visit Tools and Forms in the Education Savings Products page in 3DResources to access your portal.

Raymond James instructions

Visit the 529 Plan Resource Center on RJ Net to access your portal.

RW Baird instructions

Visit the 529 Department page on BairdWeb to access your portal.


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