Question

Duaghter refinanced student loan on her name. If I pay ,do I have to pay gift tax?

Forum|Forum|6 years ago
March 5, 2020
1 reply
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I cosigned my daughter's sallie mae loan and payments started in 2019 Sept. Paid around 1500 in 2209. She refinanced in 2020 Jan . Now it's on her name only.

If I pay for her loan now -will it come under gift tax limit for 2020?

Thanks for all the advice.

X

xmasbaby0

Employee

No you do not pay gift tax for helping with your child's student loan, You can PAY up to $15,000 in a year for her if you want to without even having to fill out a gift form. If the loan is not in your name and you are not a co-signer, you cannot get a deduction for paying, though.

GIFTS

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return. Money that you gave as a gift to someone else is not deductible for your taxes.

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-11-2-million-per-couple/#3226e75d4a4b

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**