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Submitted By: someone
Answered: August 27, 2021 12:24 am
Answered: August 27, 2021 12:24 am
If I give my daughter $5,000 each year for my granddaughter’s college tuition, do I have to file any tax return?
A gift of a present interest (e.g., cash) to each recipient up to the annual exclusion amount ($15,000 in 2021) is not subject to gift taxes and does not require the filing of a gift tax return (Form 709). A gift of any dollar amount made directly to an educational institution for a child’s or grandchild’s tuition is not taxed. No gift tax return is required.
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Tax Glossary
Withholding
An amount taken from income as a prepayment of an individual’s tax liability for the year. In the case of wages, the employer withholds part of every wage payment. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding.
