I paid for my grandchildren's college tuition. Is this a deductible expense and am I subject to gift taxes?

ANSWER

The BIDaWIZ Team's Answer:

Tuition paid for your grandchildren is exempt from gift tax. If you claim your grandchild as your dependent in your tax return, then you can claim deduction or credit, if not a dependent, no deduction or credit. In this case, your child (parent of your grandchild) can still claim the deduction or credit when they claim your grandchild as a dependant. Refer to IRS publications 950 and 970.