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Hello All,

My wife and I are fully retired in our mid-sixties and wish to pay up to $5000 a year per child towards the costs of post-secondary or tertiary education for a number of our nieces, nephews, and great-nieces/nephews ranging in age from 5-16 years. None of the children live with us, and we don't contribute anything towards their upkeep/care that would qualify them as our dependents.

Given the relationships, are there any tuition related tax credits, deductions, or other tax related advantages or approaches available to us? I have researched an IRS Tax Tip pamphlet entitled “Five Ways to Offset Education Costs” (found here: http://www.irs.gov/uac/Five-Ways-to-Offset-Education-Costs), and have also read IRS Publication 920. In all cases we don't meet the dependency requirement. I'm out of ideas, and would appreciate any suggestions, guidance, or advice.

Regards,

harbor991
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Given the relationships, are there any tuition related tax credits, deductions, or other tax related advantages or approaches available to us?

None at the Federal level. If your state has an income tax you should check to see if they offer some sort of inducement for contributions to their Qualified Tuition Program.

Phil
Rule Your Retirement Home Fool
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Thanks for the reply Phil---I kind of anticipated the answer you provided regarding federal taxes, but it never occurred to me to look into things at the state level. I'll explore that avenue---and again, thanks for your help.

harbor991
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