Can I pay off my granddaughters student loan and claim it as a credit on my taxes? The loan is in her name and they say they can not transfer it.

ANSWER

The BIDaWIZ Team's Answer:

Is your granddaughter still in college or is this a loan from awhile ago? If this is an outstanding loan, then you cannot claim a tax benefit for paying it off on her behalf. In fact, the money could be treated as a gift. If the amount exceeds $13,000, you will have to file a gift tax return, but won't owe any taxes since the lifetime gift tax exemption is $5.12 million for 2012.