However, although this election may keep you from having to pay tax, you'll still have to file a gift tax return in order to claim it. Other exclusions also keep you from having to file Form 709.

What If You Exceed the Limit? Let’s say you give $25,000 to your niece in 2025. You’d need to file Form 709 and report the excess $6,000. That $6,000 gets subtracted from your lifetime exemption.

You can gift up to $19,000 per person in 2025 with no tax and no need to file Form 709. If you’re married, you can “split” gifts to give up to $38,000 per recipient.

Filing Form 709 Gift tax returns are generally due on April 15 in the year following the gift, so you can make it part of your general tax preparation.

However, although this election may keep you from having to pay tax, you'll still have to file a gift tax return in order to claim it. Other exclusions also keep you from having to file Form 709.