Allocation 529 overcontributions on form 709
Hi,
My client is filing MFJ and contributed $33,000.00 to a 529 education account in 2019. How do I enter the information on form 709?
Thank you!
Hi,
My client is filing MFJ and contributed $33,000.00 to a 529 education account in 2019. How do I enter the information on form 709?
Thank you!
There is no allocation from F.1040 to F.709. You will need to create a new gift tax return under that client. Your client may decide to split the gift and have $3k excess over the annual exclusions or do a 5-year proration by checking Box B on Sch A.
Two gift tax returns, one for the taxpayer and one the spouse, will be created using the same information already entered. Both returns will now have Box 17 checked for Yes.
[Edited to reflect process for preparing split gift with 5-year proration]
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