1. Go to the Gift Tax > Gift General worksheet.
• Select the General worksheet.
• Select Line 14 - Elect under section 529(c)(2)(b).

This entry selects the election box on Form 709, Schedule A, Line B. The Tax system does not prorate gifts. Therefore, in addition to selecting Line 14, you must manually prorate gifts.

1. Go to the Gift Tax > Gifts worksheet.
• Select Section 1 - General.
• In Lines 1 - 17, enter the portion of the gift to be included in the current year return, as applicable.
• Select Section 3 - Donees Receiving this Gift.
• In Line 1 - Donee name, enter the name.
2. Calculate the return. The gift information flows to Form 709, Page 2, Schedule A, Part 1.

Note: Form 709 instructions lists several items of information that must be reported when the 529 Election is made.  Use Gift Tax > Gifts > Section 2 - Description of Gift or General > Estate and Gift Footnotes to prepare the required explanation.