Gift Splitting on Form 709

What gift splitting does

Each person has their own $19,000 annual exclusion per recipient in 2026. When the money for a gift comes from one spouse, only that spouse's exclusion applies, and the rest uses up their $15,000,000 lifetime exemption. If both spouses consent, the IRS treats all gifts either of them made to third parties during the year as made one-half by each. Two exclusions then apply to every gift.

It changes the numbers, not who handed over the money. The gift is the same; it is just reported as two half-gifts.

Who can split gifts

All of these must be true (2026 Form 709 instructions, Part III):

• You were married to each other when the gift was made.
• If you divorced or were widowed after the gift, you did not remarry during the rest of the year.
• Neither of you was a nonresident who is not a U.S. citizen at the time of the gift.
• You did not give your spouse a general power of appointment over the property you gave away.
• If you gave property partly to your spouse and partly to others (for example, a trust for your spouse and children), the third parties' share can be measured at the time of the gift.

Gifts between the two of you are never split. Gifts to a spouse who is a U.S. citizen are deductible anyway.

When splitting helps, and when it doesn't

It helps when

• One spouse holds most of the money and gives a child or grandchild more than $19,000.
• You want to put more than $95,000 into a 529 from one spouse's account and spread it over five years.
• You want both lifetime exemptions used evenly, for example because one spouse is in poor health.

Think twice when

• It is all or nothing. You can't split the gift to your son and keep a gift to a friend unsplit.
• Both spouses become liable for the whole gift tax for the year (joint and several liability). This matters only if tax is actually due, which is rare.
• Splitting a gift to a trust where your spouse is also a beneficiary, or one that involves grandchildren and the GST tax, gets technical fast. Take that to a CPA.
• The consenting spouse expects to need their own exemption. Half of each split gift over the exclusion comes off theirs.

One return or two?

Usually both spouses file their own Form 709. Only the spouse who made the gifts files when either exception below applies. Gifts of tuition or medical costs paid directly, and political gifts, don't count here.

• Exception 1: only one spouse made any gifts during the year, the gifts to each third party totaled no more than $38,000, and all were present interests (the recipient can use them now).
• Exception 2: only one spouse gave anyone more than $19,000 (and no more than $38,000), the other spouse's only gifts were $19,000 or less to different people, and all gifts by both were present interests.

In either case the consenting spouse signs the Notice of Consent on the giving spouse's return and files nothing. Otherwise, both file and mail the returns together.

How to fill it in: Part III and Schedule A

Part I, line 19 and Part III

1. Part I, line 19: Yes (you or your spouse made gifts to third parties).
2. Part III, line 1: Yes, you consent to split.
3. Lines 2 and 3: your spouse's name and SSN.
4. Line 4: Yes if you were married to each other for all of 2026. If not, answer No and give the date of marriage, divorce or death on line 5.
5. Line 6: Yes if your spouse is also filing a 2026 Form 709.
6. Line 7: confirm that the signed Notice of Consent is attached.

Schedule A

• List every gift either of you made to third parties in 2026 at full value in column (g), even gifts of $19,000 or less.
• Column (h): half of column (g), the part treated as your spouse's gift.
• Column (i): the other half, your net transfer.
• Your spouse's own gifts go under "Gifts made by spouse" in the same part, the same way.
• Part 4, line 2: up to $19,000 of exclusion per recipient against your half.

The rest of the return is unchanged. The full walkthrough is in how to fill out Form 709.

The Notice of Consent and its deadline

The consenting spouse signs and dates a statement that consents to treat all gifts to third parties as made one-half by each spouse. The IRS gives this wording:

"[Name of consenting spouse] elects to treat all gifts made to third parties as having been made one-half by each spouse."

• If only one return is needed: one Notice of Consent, attached to the giving spouse's return.
• If both file: each spouse signs a Notice of Consent, attached to the return of the spouse who made the gifts.
• Deadline: the consent can't be given after April 15 following the year of the gift (April 15, 2027 for 2026 gifts). If neither spouse has filed a 2026 gift tax return by then, it must be on the first return either of you files. It can't be given after the IRS sends either of you a notice of deficiency for that year.

Examples with numbers

$30,000 to a son: one return

Without splitting, Margaret would have used $11,000 of her lifetime exemption.

$60,000 toward a down payment: both file

The full line-by-line version of this example, with the Part II computation, is on the Form 709 page.

If a spouse dies or you divorce

• Death: the executor (or the guardian of a spouse who is legally incompetent) can sign the consent for that spouse. Gifts made while you were married can still be split. Answer No on line 4 and give the date of death on line 5. The executor also files the deceased spouse's own Form 709 if one is needed; see the final Form 709.
• Divorce: you can split gifts made while you were married, as long as you did not remarry before the end of the year.
• Estate tax later: each spouse's half of a split gift generally counts as that spouse's own taxable gift, so each executor adds back that half on Form 706.