For anyone contributing to a 529 college savings plan, gift taxes become a concern. That’s because your contributions to a 529 plan are considered gifts from you to the beneficiary of the account.
Fortunately, the annual gift exclusion allows each of us to give up to $11,000 to any other individual in a year without requiring a gift tax filing, and gifts made via a 529 plan qualify for the annual exclusion.
The $11,000 exclusion is per recipient, per year. If you and your spouse each give less than $11,000 to your son during the year (including 529 contributions), no gift tax returns would be required.
However, if you or your spouse exceed the exclusion limit, Form 709, the federal gift tax return, will have to be filed with the IRS by April 15 of the following year. If necessary, you can request an extension.
