Tuition & Health Insurance Premiums

[ICOUNT]

Grandparents make gifts to granddaughter of her college tuition and also health insurance premiums. Also they make gifts of the health insurance premiums for son's family including the granddaughter. They pay the premiums and tuition direct. The son and wife claim their daughter as a dependent on their 2008 return. Question can they also deduct the health insurance premium paid by the grandparents( sons return) along with the college tuition. I don't think there is a problem with the education credit- since the credit goes with the exemption- not sure on the deductions. The reason the grandparents pay directly is the gift can be over the $ 13000 annual gift tax exclusion

[grandmabee]

Grandparents make gifts to granddaughter of her college tuition and also health insurance premiums. Also they make gifts of the health insurance premiums for son's family including the granddaughter. They pay the premiums and tuition direct. The son and wife claim their daughter as a dependent on their 2008 return. Question can they also deduct the health insurance premium paid by the grandparents( sons return) along with the college tuition. I don't think there is a problem with the education credit- since the credit goes with the exemption- not sure on the deductions. The reason the grandparents pay directly is the gift can be over the $ 13000 annual gift tax exclusion

Doesn't that still count for the 13,000 limit. If I bought my adult son a new car for 20,000 and paid directly to the auto dealer are you saying that would not count to the gift limit??

[10SorTAX]

Tuition or medical expenses you pay directly to a medical or educational institution for someone are exempt from the $13000 gift tax threshhold. A car is a different deal altogether, and would be included in the $13000/year gift limit.