529b accounts and IRS form 709

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529b accounts and IRS form 709

Postby JCW500 » Fri Feb 01, 2013 9:14 am

Hi,

I opened a 529b last year for my son. The 529b is in my name. My wife and I contributed 26000 in 2012 to this account. Do we need to file 709 forms for both of us? Although we fall under the gift tax exclusion (26000 for a married couple), from just looking at the account statements alone it is not clear that I am married and that the 26000 dollar contribution does not actually exceed the 13000 per person limit.

Thanks...
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Re: 529b accounts and IRS form 709

Postby sscritic » Fri Feb 01, 2013 9:28 am

There are two answers, the wrong one and the right one, both of which are no.

If you own the account, when you give to yourself, it is not a taxable gift. When your wife gives to you, it is not a taxable gift as there is an unlimited marital deduction if you are a US citizen. This is the wrong answer.

The right answer is still no as far as I know. Note that you being married is irrelevant. If your son is married, his wife can make an unlimited gift to his 529 assuming he is a US citizen. There is no $26,000 gift tax exclusion, but there are two separate $13,000 gift tax exclusions, one for your wife and one for yourself. So who gave what to your son? I assume "my wife and I" means just that, and that not all $26,000 came from just one of you.
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Re: 529b accounts and IRS form 709

Postby JW Nearly Retired » Fri Feb 01, 2013 9:47 am

I'm pretty certain that if the contribution came out of a joint account it's considered to be half from each spouse.
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Re: 529b accounts and IRS form 709

Postby sscritic » Fri Feb 01, 2013 9:51 am

JW Nearly Retired wrote:I'm pretty certain that if the contribution came out of a joint account it's considered to be half from each spouse.
JW

JW is much more direct than I am. I agree. No form 709 is required.
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Re: 529b accounts and IRS form 709

Postby ThinkingRunner » Fri Feb 01, 2013 11:15 am

I posted this exact same question a couple of days ago. As JW says, if your contribution came out of a joint account, you don't need to file form 709.

viewtopic.php?f=1&t=110037&newpost=1600480
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