Gifts That May Not Need Form 709: Tuition, Medical, Spouse

October 17, 2026 · Informational · Not tax or legal advice

General information, not tax, legal or financial advice. We are not the IRS. Check IRS.gov or a qualified tax professional. Sources read on October 17, 2026. The 2026 Form 709 instructions were still a draft ("DRAFT", dated September 2, 2026) when read, so anything taken from them is expected and must be rechecked against the final version. Examples use made-up numbers. This page contains no affiliate links.

Short answer: the draft 2026 instructions list transfers that are not subject to the gift tax, including the educational exclusion (tuition paid directly to a qualifying school) and the medical exclusion (payments made directly to a medical care provider). Gifts to a spouse who is a U.S. citizen are a different rule: they are gifts, but generally do not have to be reported. Read the instructions before skipping a return.

Tuition

Tuition paid directly to a qualifying school is not a gift for gift tax purposes (IRC 2503(e)), but only tuition: books, supplies, room and board and similar expenses do not qualify, and contributions to a qualified tuition program (529) do not qualify for this exclusion. The payment must be made directly to the qualifying educational organization. To the extent a payment was for something other than tuition, it is a gift to the individual and may be offset by the annual exclusion.

Medical care

Payments made directly to a medical care provider (as defined in section 213(d)) are not gifts. The payment must be to the care provider. Medical care includes amounts paid for medical insurance on behalf of any individual. The exclusion does not apply to amounts reimbursed by the donee's insurance, and it is allowed without regard to your relationship to the person.

Other transfers not subject to gift tax

The draft also lists transfers to political organizations and certain payments to exempt organizations; see the instructions.

Gifts to a spouse (a separate rule)

Gifts to a spouse who is a U.S. citizen generally do not have to be reported unless you gave a terminable interest that does not meet the exception, or you want to make a QTIP election. This comes from the marital deduction, not from the "not subject to gift tax" list above. For a non-citizen spouse see the $194,000 guide.

What still counts

Gifts of future interests, and gifts above the annual exclusion to other people, may still require a return: who must file.

FAQ

Does the tuition exclusion cover room and board? No; the draft says no educational exclusion is allowed for books, supplies, room and board or similar costs.

Do I need a relationship to the person? Not for these two exclusions, per the draft.

What we could not verify

Sources (official)