Do my gifts require Form 709 or use my lifetime exemption?
This free federal gift tax calculator separates annual exclusions, Form 709 reporting, lifetime exemption usage, and estimated gift tax for one U.S. citizen or domiciled donor. Enter each recipient's full-year outright gifts and prior taxable-gift history. Published 2025 and 2026 amounts are preserved; 2027 planning uses clearly labeled provisional 2026 baselines.
gift tax calculator
Quick answer
Reportable gifts are not automatically taxable out of pocket. Deduct each recipient's annual exclusion, calculate the cumulative tentative gift tax difference, and apply only the donor's remaining lifetime credit.
Also answers
- Form 709 reporting calculator
- lifetime gift exemption usage
- gift splitting calculator
- annual exclusion per recipient
Good fit when
- Completed outright cash or property gifts
- One donor checking prior exemption use
- Eligible one-donor gift-splitting elections
Have ready
- Year and donor domicile/citizenship scope
- Annual gifts per distinct recipient
- Prior taxable gifts and reconciled credit
- Gift splitting eligibility
Result you get
Annual exclusions, taxable gifts, Form 709 reporting flag, tentative current tax, credit used, credit-equivalent exemption remaining, and estimated donor gift tax.
How this calculation works
- Applies the annual exclusion separately to each distinct recipient's annual present-interest gift total, after eligible gift splitting.
- Uses a $13,990,000 basic exclusion in 2025 and $15,000,000 in 2026. Corresponding unified credits are $5,541,800 and $5,945,800.
- Computes current tentative tax as the unified tax on cumulative gifts minus unified tax on prior gifts, then subtracts available applicable credit.
- Prior calendar-year credit cannot use the current year's exclusion increase. With DSUE and restored exclusion outside scope, prior credit is capped at the largest preceding-year basic credit, including the verified 2024 $13,610,000 basic exclusion for a 2025 gift calculation.
- For reconciled histories, exemption usage is the credit-equivalent amount obtained from the inverse unified rate table, not an assumption that every prior taxable gift consumed credit.
- The form accepts up to three distinct recipients; the pure engine accepts up to 100. Values for property are supplied fair market values, not appraisals performed by this tool.
- 2027 indexed values are provisional 2026 baselines; outputs retain cents rather than reproducing every whole-dollar return convention.
Common mistakes and caveats
- One donor only. U.S. income-tax residency does not establish domicile for transfer taxes; nonresident noncitizen and partial-year cases are blocked.
- DSUE, restored exclusion, pre-1977 special exemptions, foreign credits, retained interests, below-market loans, valuation discounts, trusts, noncitizen recipients, and generation-skipping tax are outside scope.
- Gift splitting requires eligible consenting spouses, marriage at each gift, no disqualifying remarriage, and all eligible gifts split. The result is not the spouse's tax estimate.
- Recipient income tax, capital gains basis, state tax, filing penalties, and payment credits are not calculated.
FAQ
Does a gift above $19,000 automatically produce a tax bill?
No. The annual exclusion is $19,000 per recipient in both 2025 and 2026. The excess is generally reportable and may use available lifetime credit without current gift tax. The tool shows reporting separately from the estimated tax.
Can I combine small and large gifts to use every recipient's unused exclusion?
No. The exclusion is applied separately to each distinct recipient. Combine all gifts to the same recipient into one annual total; unused exclusion from one recipient cannot offset another recipient's excess.
How does gift splitting affect this donor's exemption?
For eligible spouses who consent to split all eligible third-party gifts, half is assigned to each spouse and each has a separate annual exclusion and lifetime credit. This tool estimates only the entered donor's share, not the consenting spouse's tax. It blocks scenarios where the consenting spouse also made other gifts.
Is a joint gift tax return allowed?
No. Form 709 is an individual return. Gift splitting requires the donor to file even below the annual exclusion. The consenting spouse generally files too, although the IRS lists limited exceptions when only one spouse made gifts.
What do I enter if I previously paid gift tax?
Choose reconciled history and enter cumulative prior taxable gifts and applicable credit used in prior periods, recalculated under the Form 709 instructions. Historical checks written to the IRS are not the prior-credit input. The fully credit-covered option is only for post-1976 gifts on which all tentative gift tax was offset by credit.
Are trust gifts, tuition payments, or gifts to my spouse supported?
No. This tool accepts completed outright present-interest gifts to U.S. individual nonspouse, non-skip recipients. It blocks trust, future-interest, noncitizen-recipient, GST, and 529-election cases. Qualifying tuition and medical payments made directly to providers are excluded transfers and should not be entered as ordinary gifts.
Why is 2027 labeled provisional?
The calculator has not verified published 2027 indexed gift or estate exclusions. The 2027 option retains the 2026 $19,000 annual exclusion and $15 million basic exclusion solely as provisional planning baselines.
Last updated & sources
Last updated October 13, 2026.
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