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There are particular rules in place for direct gifts of tuition or medical bills. You may pay tuition or medical expenses for an additional particular person, without limitation. These presents don’t count against the annual exclusion or lifetime present exclusion. Nevertheless, you need to pay the school or medical supplier immediately. Funds given to the beneficiary directly will not qualify. And “tuition” means just that – tuition only, not books, supplies, charges or room and board. No specific tax reporting is required, however as a rule you should hold good data. Finally, it is your duty to have the ability to show that your present certified under this rule.
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