What is the Tuition Gift Tax Exclusion?

Oftentimes, grandparents will give grandchildren and other relatives financial gifts which can be subject to taxation by the IRS. One can gift up to $14,000 to a single person without the transaction being taxed by the IRS. And for married couples, the IRS does not tax any gifts of $28,000 or less.

However, payments for tuition are not treated as taxable gifts, if given directly to the institution or medical provider.

In the next week, check the blog to see what the tuition gift tax exclusion is limited to and what educational institutions qualify for the exclusion.

Attorney Fred Jacobs is Florida Board Certified in Tax Law.  Call Bach & Jacobs at (941) 906-1231 to schedule an appointment with Fred if you have questions about how the gift and estate tax laws affect you and your family.