529 Superfund - Form 709

[ptax255]

Hi, client superfunded child's 529 $75K in 2022. A gift tax return was filed in 2022. Should one be filed for 2023? Per instructions if no other gift was made, there is no need. But being it's for his child is it safe to not file one and assume no other or minimal gifts were made? I'm sure the client isn't tracking the 'other gifts'

[Taxtime3]

Yes, one should to be filed each year for the superfund.

[ptax255]

Hi, resurfacing this because I saw a different answer on another post with the same question? If the election was made in 2022 to be ratably spread over 5 years, why does he need to file a gift return in 2023? The 2023 portion is $15K, therefore below the gift amount exclusion. Thanks!

[qbteachmt · Accepted solution]

The IRS knows:

https://www.irs.gov/pub/irs-pdf/i709.pdf

"For each of the 5 years, you report in Part 1 of Schedule A one-fifth (20%) of the amount for which you made the election. In column E of Part 1 (Schedule A), list the date of the gift as the calendar year for which you are deemed to have made the gift (that is, the year of the current Form 709 you are filing). Do not list the actual year of contribution for subsequent years.

However, if in any of the last 4 years of the election, you did not make any other gifts that would require you to file a Form 709, you do not need to file Form 709 to report that year's portion of the election amount."