The start of another year isn’t far off. With it comes a new school semester and possibly new tuition bills. If you’re thinking about helping a grandchild or other student with their college expenses, consider the tax implications. If the amount you give exceeds the annual gift tax exclusion, you might owe gift tax on the excess. In 2024, this exclusion is $18,000 per recipient or $36,000 for married donors who split gifts. In 2025, these figures rise to $19,000 and $38,000 respectively. To avoid tax implications, you can pay tuition directly to the school, which qualifies for an unlimited gift tax exclusion. This exclusion applies only to tuition, not to room, board, books, or supplies. Contact us if you have any questions regarding the gift tax exclusion.