Have you already maxed out your 2023 gift tax exemption by making cash gifts of $17,000 ($34,000, married couples) to family members? There still may be a tax-advantaged way to support loved ones this year. If you make tuition payments directly to an educational institution or qualified medical payments directly to a medical care provider on behalf of someone else, the payments aren’t subject to the gift tax exemption limit and you don’t have to file a gift tax return. Educational payments must be for tuition only, not for room, board, books or supplies. Also, make sure you observe medical payment requirements. For example, expenses related to cosmetic surgery generally don’t qualify.
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