Gift Tax的The Educational Exclusion

Payments made directly to a qualifying domestic or foreign learning institution for the education of an individual qualify for the educational exclusion under Section 170(b)(1)(A)(ii) of the IRC.

 

You can pay your child's or grandchild's college tuition in the amount of $20,000 and also give him or her an additional $15,000 in the same year without incurring any federal gift tax. A few rules apply:

 

1. The payment must be made directly to the institution, not to the individual receiving the education.
2. The payment must be for tuition only. Other expenses, such as supplies and room and board don't count.
3. The school must offer a regular curriculum and faculty and have a regular body of students.