Do I have to file a Gift Tax Return?

Yes, any time you make a gift to someone in an amount larger than $17,000.

You report the gift amount that is more than $17,000 on a gift tax return. (For a gift of $18,000 cash, the reportable gift is $1,000).

If you're married, each spouse can gift $17,000 to the same person before needing to file a gift tax return. Gifts between spouses generally never require a gift tax return. One married couple can gift a 2nd married couple $68,000 before being required to file a gift tax return. (Each spouse makes two $17,000 gifts, totaling four separate gifts of $17,000 or $68,000.)

You pay no gift tax when you file a gift tax return. The reportable gift is, instead, just remembered and then added to your estate after you die. If your estate and gifts are more than $12.92 million in 2023, then you pay estate taxes.

The gift tax return is due April 15th in the year after the gift. You will need to file a federal gift tax return and maybe a state gift tax return, depending on your residence. Connecticut and New York require a separate gift tax return.