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Is a gift for tuition taxable?

The answer is that it depends on what the money is used for and the filing status of the taxpayer (as exclusions are applicable). If the taxpayer paid the university directly for the tuition, then the amount is nontaxable. However, if the taxpayer gifted the money to another taxpayer, and then they used the money to pay tuition, then the amount would be taxable.

Additionally, the money must be used for tuition and not room and board. So, if the payment is used for room and board, the gift would be considered taxable.

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