I am helping a non-dependent family member with her tuition costs at a community college (US - Illinois).
Is there any way for me to deduct that expense on my own taxes? I'm guessing not, since she's not a dependent.
Assuming not, what would be most beneficial to her? Should I pay the school directly or give it to her as a gift?
I am aware of two credits:
- American Opportunity Tax Credit - I don't think she is eligible because she has already done 4 years of college
- Lifetime Learning Credit - she should be eligible because her income is < 80,000
The tuition should be less than $18,000 for the year which I believe means it should be exempt from the gift tax. Is there any reason I should pay the school directly instead of giving it is as a gift or vice versa?