Paying for College Tuition

One of the best ways to do this is set up a section 529 plan. In 2014, you can contribute up to $70,000 to an account established to pay college expenses for your child or grandchild without any gift tax consequences. The gift is considered made over a 5 year period by the IRS which keeps in within the $14,000 annual gift tax exemption. Georgia also has a very good 529 program, and you can deduct up to $2,000 per beneficiary on the Georgia return if you use the GA 529 plan.