Sandy pays a local college for her non-dependent boyfriend's tuition. The payment is not subject to the Federal gift tax.

Question

Quizplus · Accepted Answer

According to the IRS, payments made directly to an educational institution for someone else's tuition are not subject to the Federal gift tax as long as the payment is made for the benefit of that person and not as a gift to that person. This applies regardless of whether the recipient is a dependent or not.

Sandy Pays a Local College for Her Non-Dependent Boyfriend's Tuition