Schedule A. Computation of Taxable — 2025 Inst 709-NA (PDF)

Do not enter on Schedule A any gift or part of a gift that qualifies for the political organization, educational, or medical exclusion. In the instructions below, “gifts” means transfers (or parts of transfers) that do not qualify for the political organization, educational, or medical exclusion.

Line A. Valuation Discounts If the value of any gift you report in either Part 1, Part 2, or Part 3 of Schedule A includes a discount for lack of marketability, a minority interest, a fractional interest in real estate, blockage, market absorption, or for any other reason, answer “Yes” to the question at the top of Schedule A. Also attach an explanation giving the basis for the claimed discounts and showing the amount of the discounts taken.

8 Instructions for Form 709-NA (2025)

Line B. Qualified Tuition Programs (529 Plans or Programs) If, in 2025, you contributed more than $19,000 to a QTP on behalf of any one person, you may elect to treat up to $95,000 of the contribution for that person as if you had made it ratably over a 5-year period. The election allows you to apply the annual exclusion to a portion of the contribution in each of the 5 years, beginning in 2025. You can make this election for as many separate people as you made QTP contributions.

You can only apply the election to a maximum of $95,000. You must report all of your 2025 QTP contributions for any single person that exceed $95,000 (in addition to any other gifts you made to that person).

For each of these 5 years, you report in Part 1 of Schedule A one-fifth (20%) of the amount for which you made the election. In column (e) of Part 1, list the date of the gift as the calendar year for which you are deemed to have made the gift (that is, the year of the current Form 709-NA you are filing). Do not list the actual year of contribution for subsequent years.

However, if in any of the last 4 years of the election, you did not make any other gifts that would require you to file a Form 709 or 709-NA, you do not need to file Form 709-NA to report that year's portion of the election amount.

Example. In 2025, Pat contributed $100,000 to a QTP for the benefit of Max. Pat elects to treat $95,000 of this contribution as having been made ratably over a 5-year period. Accordingly, for 2025, Pat reports the following.

$5,000 (the amount of the contribution that exceeded $95,000)

$19,000 (the one-fifth portion from the election)

$24,000 the total gift to A listed in Part 1 of Schedule A for 2025

In 2026, Pat gives a gift of $20,000 cash to Alex and no other gifts. On Pat’s Form 709-NA, Pat reports in Part 1 of Schedule A the $20,000 gift to Alex and a $19,000 gift to Max (the one-fifth portion of the 2025 gift that is treated as made in 2026). In column (e) of Part 1, Pat lists “2026” as the date of the gift.

How To Complete Parts 1, 2, and 3 After you determine which gifts you made in 2025 that are subject to the gift tax, list them on Schedule A. You must divide these gifts between:

Part 1—those subject only to the gift tax (gifts made to nonskip persons—see Part 1—Gifts Subject Only to Gift Tax , later);
Part 2—those subject to both the gift and GST taxes (gifts made to skip persons—see Gifts Subject to Both Gift and GST Taxes and Part 2—Direct Skips ,

later); and

Part 3—those subject only to the gift tax at this time but which could later be subject to GST tax (gifts that are indirect skips—see Part 3—Indirect Skips and Other Transfers in Trust , later).

If you need more space, attach a separate sheet using the same format as Schedule A.

Tip: Use the following guidelines when entering gifts on Schedule A.

Enter a gift only once—in Part 1, 2, or 3.
Do not enter any gift or part of a gift that qualified for the political organization, educational, or medical exclusion.

Gifts to Donees Other Than Your Spouse You must always enter all gifts of future interests that you made during the calendar year regardless of their value.

If the total gifts of present interests to any donee are more than $19,000 in the calendar year, then you must enter all such gifts that you made during the year to or on behalf of that donee, including those gifts that will be excluded under the annual exclusion. If the total is $19,000 or less, you need not enter on Schedule A any gifts (except gifts of future interests) that you made to that donee. Enter these gifts in the top half of Part 1, 2, or 3, as applicable.

Gifts to Your Spouse

Spouses who are not U.S. citizens. If your spouse is not a U.S. citizen and you gave your spouse a gift of a future interest, you must report on Schedule A all gifts to your spouse for the year. If all gifts to your spouse were present interests, do not report on Schedule A any gifts to your spouse if the total of such gifts for the year does not exceed $190,000 and all gifts in excess of $19,000 would qualify for a marital deduction if your spouse were a U.S. citizen (see the instructions for Schedule A, Part 4, line 4). If the gifts exceed $190,000, you must report all of the gifts even though some may be excluded.

Spouses who are U.S. citizens. Except for the gifts described below, you do not need to enter any of your gifts to your U.S. citizen-spouse on Schedule A.

Terminable interests. Terminable interests are defined in the instructions for Part 4, line 4. If all the terminable interests you gave to your spouse qualify as life estates with power of appointment (defined under Life estate with power of appointment, later), you do not need to enter any of them on Schedule A.

Pat makes no gifts in 2027, 2028, or 2029. Pat is not required to file Form 709-NA in any of those years to report the one-fifth portion of the QTP gift because Pat is not otherwise required to file Form 709-NA.

You make the election by checking the box on line A at the top of Schedule A. The election must be made for the calendar year in which the contribution is made. Also, attach an explanation that includes the following.

The total amount contributed per individual beneficiary.
The amount for which the election is being made.
The name of the individual for whom the contribution was made.

Caution: Contributions to QTPs do not qualify for the education exclusion.

Instructions for Form 709-NA (2025) 9

However, if you gave your spouse any terminable interest that does not qualify as a life estate with power of appointment, you must report on Schedule A all gifts of terminable interests you made to your spouse during the year.

Charitable remainder trusts. If you make a gift to a charitable remainder trust and your spouse is the only noncharitable beneficiary (other than yourself), the interest you gave to your spouse is not considered a terminable interest and, therefore, should not be shown on Schedule A. See section 2523(g)(1). For definitions and rules concerning these trusts, see section 2056(b)(8)(B).

Future interest. Generally, you should not report a gift of a future interest to your spouse unless the future interest is also a terminable interest that is required to be reported as described earlier. However, if you gave a gift of a future interest to your spouse and you are required to report the gift on Form 709-NA because you gave the present interest to a donee other than your spouse, then you should enter the entire gift, including the future interest given to your spouse, on Schedule A. You should use the rules under Gifts Subject to Both Gift and GST Taxes , later, to determine whether to enter the gift on Schedule A, Part 1, 2, or 3.