This blog discusses the need to file 1 or 2 different form 709 Gift Tax returns if a gift is given in a community property State.  

As you might know, you have to file a form 709 – Gift tax return anytime that  your gift is above the current $15,000 limit (current as of 2021).   You have exemptions that will help you to not pay the tax, however a gift tax return is required to be filed.   This article does not discuss the exemption amounts, but only focuses on requirement for spouses to file 2 gift tax returns, which might be the case in community property States.

In general, if you and your spouse elect gift splitting, then both spouses must file his or her own individual gift tax return.  There are exceptions to this (see exceptions below).  However, in general, for gifts to donees other than your spouse,  You must always enter all gifts of future interests that you made during the calendar year regardless of their value.

Gift splitting not elected.

 If the total gifts of present interests to any donee are more than $15,000 in the calendar year, then you must enter all such gifts that you made during the year to or on behalf of that donee, including those gifts that will be excluded under the annual exclusion. If the total is $15,000 or less, you need not enter on Schedule A any gifts (except gifts of future interests) that you made to that donee. Enter these gifts in the top half of Part 1, 2, or 3, as applicable.

Gift splitting elected.

Enter on Schedule A the entire value of every gift you made during the calendar year while you were married, even if the gift’s value will be less than $15,000 after it is split in column G of Part 1, 2, or 3 of Schedule A.

Gifts made by spouse.

 If you elected gift splitting and your spouse made gifts, list those gifts in the space below “Gifts made by spouse” in Part 1, 2, or 3. Report these gifts in the same way you report gifts you made.