Grandparents paying tuition

BelknapPoint
Fri, 12 Oct 2018 14:04:31 +0000

I’d check with your CPA and have them check with their CPA. That is possibly the best gift anyone could ever give. That aside, if I were the “gifted” I would like to be able to write off the 14K ( or whatever it is) that can be gifted to anyone each year.

Any money paid for your benefit for medical and education expenses that is paid directly to the provider (doctor, hospital, college, etc.) does not count as a gift as far as the IRS is concerned, and it does not matter if the amount in any one year exceeds the annual gift tax exclusion.

That said, it does count as a gift that would need to be reported on FAFSA question 45.j., but if the entire college bill is being footed by the grandparents, it probably doesn’t matter anyway.