How does gift splitting work for married couples?
Available to married U.S. citizens and residents who both consent
Under IRC §2513, a married couple can elect to treat a gift one spouse makes to a third party as made half by each, so a $38,000 gift in 2026 uses two $19,000 annual exclusions. Both spouses must be U.S. citizens or residents, both must consent on Form 709, and the election covers all gifts that year. Gifts of Texas community property are already half from each spouse.
Reviewed by Ebot Mbi, CPA, EA · Last reviewed · Law and figures current as of September 17, 2026
Key takeaways
- Both spouses must be U.S. citizens or residents at the time of the gift.
- The election requires a Form 709 even if each spouse's half is within the $19,000 exclusion.
- The election applies to all gifts either spouse makes to third parties that year.
- Both spouses become jointly and severally liable for that year's gift tax (§2513(d)).
- Community property gifts are treated as half from each spouse without an election.
What it is
Gift splitting is an election that lets a married couple treat a gift made by one spouse as if each spouse made half of it. It matters when one spouse owns most of the separate property: without the election, only that spouse's annual exclusion and lifetime exemption are used.
The election can make a large difference over time. It lets a couple use both annual exclusions every year for each recipient, and it spreads larger gifts evenly across both spouses' lifetime exemptions, so neither spouse's exemption is used up first.
What the law says
IRC §2513(a)(1) treats a gift by one spouse to anyone other than the other spouse as made one-half by each, but only if each spouse is a U.S. citizen or resident at the time of the gift. Section 2513(a)(2) requires both spouses to consent, and the consent applies to all such gifts made during the calendar year while they were married. Section 2513(d) makes each spouse jointly and severally liable for the entire gift tax for that year.
Treas. Reg. §25.2513-1 requires the spouses to be married at the time of the gift and provides that the election is unavailable if either spouse remarries during the rest of the calendar year. Consent may be signified on either spouse's return.
Requirements and tests
- Married at the time of the gift and not remarried to someone else during the rest of the year.
- Both spouses are U.S. citizens or residents at the time of the gift.
- Consent signified on a timely Form 709, which is generally due April 15 of the following year (with an extension available).
- The election covers all gifts to third parties by either spouse for the year; it cannot be made gift by gift.
- The consenting spouse generally files a separate Form 709, unless the exceptions in the Form 709 instructions apply, such as when only one spouse made gifts and they were all present interests of $38,000 or less per donee.
- Gifts in which the other spouse has an interest, such as a trust for the spouse and children, need special analysis.
How it works
The donor spouse reports the gift on Form 709, and the other spouse signs the consent. Each spouse is treated as having made half, so each half uses that spouse's annual exclusion first and then that spouse's lifetime exemption.
Texas note: under Texas Family Code §3.002, property acquired by either spouse during marriage, other than separate property, is community property. The Form 709 instructions treat a gift of community property as made one-half by each spouse, so no split election is needed for it. The election matters mainly for gifts of one spouse's separate property.
Example: in 2026, one spouse gives $1,000,000 of separate property to a trust for the children, and the couple splits the gift. Each spouse is treated as giving $500,000. If the trust qualifies for the annual exclusion for two children, each spouse uses $38,000 of exclusions and $462,000 of lifetime exemption, and both file Forms 709.
When the election is made, it also applies to any other gifts either spouse made to third parties that year, including gifts the other spouse may not have thought about, such as a large payment to an adult child. Gather a full list of each spouse's gifts before deciding.
Assumptions: Spouse A gives $38,000 of A's separate property to a child; spouse B makes no gifts; both are U.S. citizens.; 2026 annual exclusion $19,000; no prior taxable gifts; basic exclusion amount $15,000,000 each.; Community property comparison: the same $38,000 comes from Texas community funds.
| No election: taxable gift by A ($38,000 − $19,000) | $19,000 |
|---|---|
| No election: A's remaining exemption | $14,981,000 |
| With §2513 election: taxable gift by each spouse | $0 |
| With election: Form 709 required | Yes (A's return with B's consent) |
| Community property: taxable gift by each spouse | $0 |
| Community property: Form 709 required | No (each half is within $19,000) |
Splitting a separate-property gift saves $19,000 of A's exemption but requires a Form 709; a community property gift gets the same result without an election.
Illustration only; not a projection of your results.
Risks and IRS scrutiny
Risks include forgetting to file, which means no split; splitting in a year with other large gifts, which binds both spouses to all of them; joint and several liability after a divorce; and trusts in which the non-donor spouse is a beneficiary, which can make the split unavailable for part of the gift.
If the IRS later increases the value of a split gift, both spouses' gift tax computations change, and both are liable for any resulting tax.
Who it is not for
This is not for unmarried couples, couples who were not married at the time of the gift, couples in which either spouse is a nonresident noncitizen, or couples giving only community property. It is also not for a spouse who is uncomfortable with joint gift tax liability for the year.
How ebotCPA helps
We determine whether each gift is community or separate property, decide whether the split helps, prepare both spouses' Forms 709, and track each spouse's remaining exemption.
Book a $497 Case Analysis to have Ebot Mbi, CPA, EA review your facts before you act.
Frequently asked questions
Do both spouses have to sign Form 709 to split gifts?
Both spouses must consent. Consent can be shown on either spouse's return, and the consenting spouse usually files a separate Form 709 unless an exception in the instructions applies.
Can we split only some gifts?
No. The election applies to all gifts either spouse makes to third parties during the year.
Do Texas couples need to split gifts?
Not for community property, which is already treated as half from each spouse. Gift splitting matters for gifts of one spouse's separate property.
Can we split gifts if we divorce later in the year?
Yes, if you were married at the time of the gift and the donor spouse does not remarry during the rest of the year (Treas. Reg. §25.2513-1).
Have facts like these?
Book a $497 Case Analysis to have Ebot Mbi, CPA, EA review your facts before you act.