The correct answer is a) True. In the United States, gifts made directly to educational institutions for tuition payments are exempt from the gift tax.
The correct answer is a) True.
In the United States, there is a federal gift tax imposed on certain large gifts. However, gifts made directly to educational institutions for tuition payments are exempt from the gift tax. This means that Renata's $36,000 tuition payment made to her granddaughter's university does not need to be reported on a gift tax return.