Classify each of the following statements.
-Meg gives her 18-year-old son money for his college tuition and living expenses
e.g., room and board).

Question

Quizplus · Accepted Answer

Payments made directly to an educational institution for someone's tuition are not considered taxable gifts under U.S. tax law. Similarly, payments made directly to a medical institution for someone's medical expenses are also exempt. In this scenario, since Meg is paying for her son's college tuition and related expenses directly, no taxable transfer occurs, making it a non-taxable event.

Classify Each of the Following Statements