Grandparent paying grandson's college tuition

[Gus16]

I believe I already know the answer ... but I am going for a second opinion.  I am paying for my grandson's college tuition and dorm costs.  Do I get a gift tax or other tax deduction?

Thanks

     Gus

[MinhT1 · Accepted solution]

If your grandson is your dependent, then you can claim his education credits such as the American Opportunity credit or the Lifetime Learning credit.

If he is not your dependent (i.e. a dependent of his parents or a non-dependent), then you cannot claim the education credits. Then the tuition is considered as a gift to your grandson. This gift is not deductible. If the gift exceeds $15,000, you have to file a gift tax return (form 709) which is not supported by TurboTax.

[Gus16]

thanks very much.  that is what I thought.

Gus

[Hal_Al]

If the student is the parent's dependent, they may use what you paid, in calculating the tuition credit on their return.  Although the general rule, in taxes, is that you must be the one making the payment, to get the deduction, there is an exception for education.

There is also a gift tax exception for education. But, you must make your payment to the school. Reference: https://www.savingforcollege.com/article/tuition-gift-tax-exclusion