The National Directory of Certified Public Accountants

Ask A CPA - Gifts

Do Payments To My Granchild'S Education Reduce The Annual Gift Tax Exclusion Of $14,000

Contributions to your grandson's tuition directly does not reduce the annual gift tax exclusion of $14,000 ($13,000 in 2012). The gift tax exclusion for paying another's tuition or medical expenses directly is unlimited.

If you need professional help with "Gifts" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.