Wednesday, July 31, 2013

Gifting a College Education Can Be Tax Free!



Did you know that the IRS allows any relative to give the gift of tuition without subjecting the benefactor to transfer taxes. While the IRS limits other tax-free gifts to $14,000 annually, tuition gifts are limitless when prepaid directly to the school-and they do not count toward the annual gifting total. Even better, tuition gifting can be done without the help of an attorney or complicated tax-work. There are no tax-reporting requirements for this type of gift.  

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