Say I want to make the maximum Coverdell contribution, but I am in the phase-out region of AGI. That means I need to wait until my 1040 is (nearly) final, and contribute in calendar year N+1 for crediting as a tax year N contribution.
I make the actual contribution in year N+1. Does the contribution come out of the gift tax annual limits for year N+1? Or year N? Seems a bit odd (but no more odd than other stuff in the tax code!)...
If I'm not mistaken, the Coverdell contribution is not a gift and thus does not come out of any year gift tax exclusion.
from the
Your contribution is treated as a gift from you to the beneficiary. It qualifies for the annual $12,000 gift tax exclusion. Be sure to keep this in mind if you also contribute to a 529 plan for the same child. You will need to add these contributions together in determining your gift tax filings."
And from Fairmark; "A contribution to a Coverdell account is treated as a completed gift of a present interest. That's taxspeak for the kind of gift that qualifies for the annual gift tax exclusion."
These were the first two google hits for [coverdell gift tax]. Why would you think this would slip through, and not count as a gift? Joe
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