How do I enter contributions to a 529 qualified state tuition plan on a Gift Tax return using interview forms?

The steps below will check the election box on Form 709, Schedule A, line B. 

  1. Go to Interview Form GIFT-1 - General Gift Information.
    • In box 56 or 57 - X if elect under section 529(c)(2)(b) - override, enter X.
  2. Calculate the return.

The program does not prorate these gifts.  To manually prorate the gifts, do the following:

  1. Go to Interview Form Gift-4 - Gifts.
    • In the Gift section, enter the portion of the gift to be included in the current year return as needed.
    • Enter box 70 - Donee number.
  2. Calculate the return.

Notes:

  • The above information flows to the Form 709 Pg 2, Schedule A, Part 1.
  • Form 709 instructions list several items of information that must be reported when the 529 Election is made.  Use Interview Form Gift-4 - Gifts, box 60 - Description, or Interview Form 7 - Estate and Gift Footnotes to prepare the required explanation.
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