topic My kids grandparents who live abroad would like to send money as a gift to my son who is 16 years old toward his college education. what are gift tax implications for me? in Education

My kids grandparents who live abroad would like to send money as a gift to my son who is 16 years old toward his college education. what are gift tax implications for me?

babu_aravind — Tue, 18 Jun 2019 16:05:25 GMT

Re: My kids grandparents who live abroad would like to send money as a gift to my son who is 16 years old toward his college education. what are gift tax implications for me?

DoninGA — Tue, 18 Jun 2019 16:10:33 GMT

A gift received from an individual is not taxable nor is it reported on a tax return.

If the gift is from a foreign individual and the amount is over $100,000 then the gift has to be reported to the IRS using Form 3520. This is an information form only - https://www.irs.gov/forms-pubs/about-form-3520

Re: My kids grandparents who live abroad would like to send money as a gift to my son who is 16 years old toward his college education. what are gift tax implications for me?

Hal_Al — Wed, 19 Jun 2019 19:08:07 GMT

Gift tax is not applicable to foreigners.

Even for U.S. citizens, "Gift Tax" is somewhat of a misnomer. Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/INF12127.html