<p>A relative of ours would like to contribute about $2,000 dollars each year toward my son's college education, which is greatly needed and appreciated. He's a '10 and will begin in September. Obviously, we don't want this gift to decrease his financial aid by raising his annual income. What is the best way to make this transfer, taking into consideration tax laws affecting both our family and theirs, and S's financial aid. (Unfortunately, having them buy his laptop won't work because he had already ordered it through the school and the cost will be added to his tuition bill.)</p>
<p>Have the relative pay the college directly. A check from "Grandpa" to "Univ." for student account #xxxxxxxx.</p>
<p>Unless I am missing something your relative should give this directly to your son and no one should claim it anywhere.You can legally give someone ...anyone ...up to $11,000 a year without reporting it to anyone.If you report it to the school they could reduce his monies.</p>
<p>I'm with DT123. Have him send it directly. Son doesn't show income, bill gets paid, everyone's happy.</p>
<p>Just give him cash. Durr</p>