Reply to Tax Advantaged things grandparents can do for grandchildren

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here. My understanding is that grandparents paying for daycare is not tax advantaged in the same way that paying directly for pre K and up is unless it’s part of the $32,000 they can gift her generally. Am I wrong on that? She’d be starting at 1 year old due to maternity and paternity leave. Thanks for the great ideas, I didn’t even think of summer camp![/quote]

The $34k (per couple to a single person) gift "limit" is just the maximum amount you can give without reporting it.  You can give someone over that amount in a year, you just have to report it and start tracking to ensure it doesn't go above the total lifetime exclusion ($13 million right now). So even if a certain payment/tuition counts as a gift, they can give large amounts and not be taxed. They just have to start reporting it.

https://www.nerdwallet.com/article/taxes/gift-tax-rate[/quote]

Grandparents that have enough to fully fund the gk education may likely be concerned about their lifetime gift tax exemptions.  Goal typically is to find ways to use the money now that does NOT count agains that lifetime exemption.  [/quote]

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