tax impact of paying down student loans?

[albireo13]

I have a son who is struggling with jobs and does not have a career going yet.
He has a bunch of federal student loans (>$40K). I have been helping him and would also like to pay down part of his loans, not all.

I was wondering about the gift tax. If I pay directly some of the loan, is that considered a gift to him to the IRS? I am thinking yes but, after searching I haven't gotten a clear answer.

 

[RunningBum]

Did you co-sign? If so then I can't see how it is a gift to pay something you are also responsible for.

 

[RunningBum]

If you haven't already gifted him this year, you could pay $15K this year, and $16K next year without having to fill out that excess gift form. If you are married you can double it, and if he is married that doubles it again.

There's no tax that will be due now. The excess over the annual amount just counts against your lifetime exemption.