Gift tax - tution

[okinawafl]

I will need to pay tution for my family members who will be coming to U.S. as international students (F1 visa).

He has 5 years exemption from SPT (so he will be filing 1040 NR). May I know if I pay over $16,000 tuition for him, will I subject to gift tax?

thanks.

[nelsona]

If the child is your dependant, and lives with you half the year, you can spend any ammount on him without giving rise to gift tax. Otherwise giving him more than the yearly limit makes you subject to gift tax on form 709.

[okinawafl]

May I clarify if I paid the tuition over $16,000 (say $20,000) 'directly' to the univeristy this year for my relatives (who is a "F-1 student", not U.S. tax resident and will file 1040NR), will the total amount I paid for him will be exempted from gift tax calculation. Or this tuition exempt is not applicable when the donee is non-resident or for all donee regardless their status?


thanks again.

[nelsona]

It is whether they are your dependent, regardless of where they live.

[ND]

Investigate 'The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts. Tuition expenses you pay for someone (the educational exclusion). https://www.irs.gov/businesses/small-bu ... gift-taxes

[okinawafl]

Thanks.
So it looks like even my relatives is not my dependent (and not u.s. tax resident as well) and I pay tuition over $16k directly to the university, I don't have to worry and report any gift to IRS (form 709).