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I have some store credit on my iTunes account that I got couple months ago and am gifting a film on iTunes for my sisters birthday..
If i gift the film does the cost come off my store credit or my credit card?

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Quote from Apple's Support page about Gifting...

"When you purchase an iTunes Gift, you must have a valid credit card on file; you can't purchase an iTunes Gift with store credit..."

- http://support.apple.com/en-us/ht2736

So to simplify..

Apple charges the gifted item straight to your credit/debit card. NOT the credit on your account.

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