Submitted By: someone
Answered: August 27, 2021 12:24 am

If I give my daughter $5,000 each year for my granddaughter’s college tuition, do I have to file any tax return?

A gift of a present interest (e.g., cash) to each recipient up to the annual exclusion amount ($15,000 in 2021) is not subject to gift taxes and does not require the filing of a gift tax return (Form 709). A gift of any dollar amount made directly to an educational institution for a child’s or grandchild’s tuition is not taxed. No gift tax return is required.

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Tax Glossary

Capital expenses

Costs that are not currently deductible and that are added to the basis of property. A capital expense generally increases the value of property. When added to depreciable property, the cost is deductible over the life of the asset.

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