Gifts to granchildren for tuition

[tsuewalker]

Is there any deduction for gifts given to grandchilren for tuition. They are not dependents.

[Jiggers]

No, no deduction.

[taxea]

Is there any deduction for gifts given to grandchilren for tuition. They are not dependents.

From TTB:

Expenses paid by parents and others. Students who qualify to
claim an education credit can use payments by their parents or
third parties to claim education credits. Payments are considered
gifts to the student.

Note: If student has taxable income the deduction goes to him/her

[John of PA]

There could be a deduction on your state tax return if the gift is put into a 529 college savings plan. In PA you do get a deduction.

[dkss]

There could be a deduction on your state tax return if the gift is put into a 529 college savings plan. In PA you do get a deduction.

Indiana also has a very generous credit for contributing to a 529 plan.

[Burke]

VA also has a deduction but it has to be a VA 529 plan with the state. Is this common in other states? Those universal plans sold by financial advisors do not qualify here (for the tax deduction on the return.) Although apparently they are leading the clients to believe so.

[taxea]

There was no mention in the ori post about a 529 and either way it is the child's to deduct.

[John of PA]

The original post mentioned giving money for tuition, thats what a 529 does, if you were not aware of that, you are now. What was not in the original post was anything about Dr. Phil.