Only individuals can file a gift tax return and no joint returns can be filed. A return is required if any of the following situations are applicable in a calendar year:
1. You gave more than $13,000 to any individual other than your spouse. Direct payments of another person's medical or tuition costs are not considered gifts and don't have to be considered regardless of the amount.
2. You and your spouse together gave more than $26,000 to anyone.
3. You gave more than $136,000 to a non citizen spouse.
Gifts can be stock, cash, debt forgiveness, and below market sales.
A taxable gift reduces your lifetime exclusion of $5.12 million (2012). No gift tax is due unless you exceed this amount so it is generally just a reporting exercise with no tax payments required.
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