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"Can I pay expenses without paying a gift tax?"

  • bradt
    Posted: Jan 17, 2009 10:03 AM
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    bradt
    Oklahoma City, OK
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    I've heard there are some expenses you can pay directly for a family member without being subject to paying a gift tax. I am especially interested in tuition for my children and medical expenses for my parents.

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  • #1
    Spryguy
    Posted: Jan 17, 2009 02:29 PM
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    Spryguy
    Dayton, OH
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    I know you can pay for college tuition as long as you pay the bills directly to the college.

  • #2
    redrover
    Posted: Jan 17, 2009 04:37 PM
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    redrover
    Huntsville, AL
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    Medical bills you pay for someone are also tax-free, and it doesn't matter who the person is, or your relationship, as long as you pay them directly to the doctor or hospital.

  • #3
    Baldeagle
    Posted: Jan 18, 2009 10:32 AM
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    Baldeagle
    Phoenix, AZ
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    A word of caution - school and medical bills are OK - but some other expenses are not. For example, if you pay for your grandson's music lessons or help pay to have an addition built on your daughter's home, the amount you contribute will be subject the the gift tax. By the way, the gift tax is cumulative throughout the year for each individual.

  • #4
    johnjkern
    Posted: Mar 18, 2009 06:48 PM
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    johnjkern
    Houston, TX
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    Yes, in 2009 you can gift as much as you want directly to the college or medical provider without paying gift taxes. Both you and your wife can gift up to $13000 each per person for other areas without paying gift tax.

    hope this helps.

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