Submitted By: Ronald
Answered: April 1, 2014 8:30 am

Can I deduct the tuition I pay to my grandchild’s college?

The above-the-line deduction for tuition and fees for higher education can be claimed by a taxpayer only for him/herself, spouse, or dependent. If your grandchild is your dependent, then you qualify for the deduction. For gift tax purposes, payments of tuition directly to an educational institution are exempt from gift tax, regardless of amount.

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Tax Glossary

Ordinary and necessary

A statutory requirement for the deductibility of a business expense.

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