Tax Facts

911 / What gift tax exclusion applies, if any, for gifts made for education or medical expenses?



A “qualified transfer” is not considered a gift for gift tax purposes. A “qualified transfer” means any amount paid on behalf of an individual–

(A)    as tuition to an educational organization1 for the education or training of such individual, or


(B)     to any person who provides medical care2 with respect to such individual as payment for such medical care.3 A technical advice memorandum treated tuition payments for future years as qualified transfers where the payments were nonrefundable.4








1.    IRC § 170(b)(1)(A)(ii).

2.    As defined in IRC § 213(d).

3.    IRC § 2503(e); Rev. Rul. 82-98, 1982-1 CB 141.

4.    Let. Rul. 200602002; TAM 199941013.

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