Paying college fees is one of the most worrying issues for many US parents and since the introduction of fees for UK universities, it is becoming a situation appreciated in my home country too. Many students are responsible and want to help parents with paying college fees but there are limited Ways other than by getting a scholarship on their own merits or a job, which let’s face it, is no easy feat in an economic slump. Sometimes, we just have to be Smart and take advantage of all the options. Were you aware that there are Tax breaks that help with paying college fees? To my mind this is a double whammy. Not only does the IRS get less of your hard earned cash but it’s put to good use for your kids’ education. Take a look at these 7 Tax Smart Ways to Pay College Fees.

1. Pay to College

In the US, the threshold for gift tax is $13,000. There are exemptions to this rule, and one of them is through paying course fees directly to a school. Paying for college fees in this way is an increasingly popular option amongst grandparents and other relatives outside of the immediate family. I applies to school fees only and cannot be applied to a student’s living expenses.