hsingh wrote:- Or should I not make any additional contributions and claim on form 709 that the $27,000 contributions were made just by me? ...
And above all, are there other ideas you have that I should consider? Thanks in advance to anyone who takes the time to reply and Happy Holidays!
Split the gift with your wife for this year. That's $13,500 each. File your 709 (quiz: can you file only one or do you each have to file?).
When you die in 40 years you will have $500 less each of lifetime exemption. Or something like that - what you will actually have less of is the lifetime credit, by the amount of the tax on $500 of taxable gifts. Taxable gifts under $10,000 are taxed at 18%,* so you will lose $90 of credit against what your estate will owe upon your eventual demise, as will your wife.
This preserves your right to make a new 5 year gift to the 529 next year ($140,000 between the two of you).
I am not a tax attorney, so don't believe anything I write unless you follow up and read for yourself. Note that even if I were a tax attorney I would have to say that I was not your attorney, yada yada yada ... same stuff.
* 2011 law. The forms aren't out yet for 2012, and I don't have the time to look up this year's rate.