A gift tax return does not need to be filed unless the taxpayer has made current gifts in excess of the applicable credit.

Question

Quizplus · Accepted Answer

A gift tax return must be filed if the taxpayer has made gifts in excess of the annual exclusion amount or if the taxpayer has utilized a portion of their lifetime exemption amount. The applicable credit determines the amount of gift tax that may be owed and is not a threshold for filing a gift tax return.

A Gift Tax Return Does Not Need to Be Filed