Do I owe gift tax when I send my child money for tuition?

Not if you pay it directly to the school. Under IRC §2503(e), tuition paid directly to an educational institution is completely exempt from gift tax with no dollar limit, and it doesn't even count against your annual exclusion.

🎓Study Abroad Gift Tax Calculator

Q: What about room, board, and living expenses?

Those don't qualify for the unlimited tuition exclusion. They're treated as ordinary gifts, covered by your annual gift tax exclusion of $19,000 per parent per year (2025), or $38,000 if both parents give.

Q: What happens if I go over the annual exclusion?

The excess counts against your lifetime estate and gift tax exemption rather than triggering an immediate tax bill for most people, but you still need to file Form 709 to report it.

Gift-tax exclusion for study abroad

Total annual remittance sent abroad ($)

Tuition paid directly to the school ($)

Other gifts already given this year ($)

Number of parents gifting

Sending Tuition Money Without Triggering Gift Tax

Wiring money abroad for a child's education raises an obvious question: does this count as a taxable gift? Tuition paid directly to the school is exempt from gift tax under IRC §2503(e) — no dollar limit, and it doesn't count against your annual exclusion. Room, board, and living expenses don't get that treatment; they're ordinary gifts.

Where the Annual Exclusion Comes In

Beyond direct tuition, each parent can give up to $19,000 a year (2025) gift-tax-free, or $38,000 combined if both parents give. Anything above that eats into your lifetime exemption rather than triggering a bill, but still needs reporting on Form 709. This calculator splits your remittance into tuition, exclusion-covered gifts, and any taxable overage.

Frequently Asked Questions

Do I owe gift tax when I send my child tuition money?

Not if it's paid directly to the school — that's unlimited and gift-tax-free under IRC §2503(e).

What about room, board, and living expenses?

Those count as ordinary gifts, covered by the $19,000 annual exclusion per parent (2025).

What happens if I go over the annual exclusion?

The excess uses up part of your lifetime exemption instead of an immediate bill, but still needs Form 709.

※ Estimate only, based on current IRS figures. Consult a tax professional for your specific situation.

Sending Tuition Money Without Triggering Gift Tax

Where the Annual Exclusion Comes In

Frequently Asked Questions

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