Tax deduction

[Bilmar]

I pay some of my granddaughters tuition. Is any of it tax deductible?

[MelanieC1]

Hi @Bilmar !  Thank you for joining us today!

Paying your granddaughter's tuition is not deductible on your tax return, unless, you claim her as a dependent. 

Usually, the parent(s) still claim the college student as a dependent on their return and they are generally able to take any tuition credits that are available.

Keep in mind though that any payments you make directly to your granddaughters school qualifies for the federal gift tax educational exclusion.  Money gifted to a friend or family member to pay for college tuition is not subject to the federal gift tax. Under the Internal Revenue Code, you can pay unlimited amounts for someone’s tuition and not be taxed.

Thank you!

Melanie, CPA