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Financial Advice Column Addresses Student Loans, Gold Coins and Social Security Benefits
A financial advice column responds to reader questions on tax implications of paying a child's student loans, selling inherited gold coins and spousal Social Security benefits. The responses cover gift tax exemptions, capital gains taxes and eligibility rules for benefits. The column provides guidance based on 2026 tax limits and Social Security regulations.
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The first question concerns tax advantages for parents paying off their adult child's student loan debt. The column explains relevant tax rules and exemptions.
The reader states that their daughter has $60,000 in student loan debt from her master's degree and currently works a minimum wage job. The parents seek information on deductions or benefits to offset the cost of repayment. The response indicates no deduction is available for such payments.
Payments to a child are subject to gift tax rules. The annual gift tax exemption for 2026 allows up to $19,000 per recipient without filing a gift tax return. A married couple can give $38,000 combined to their daughter in 2026 toward the loans.
loan debt affects many college graduates.
A Gallup poll reported that the majority of borrowers delayed major life milestones, such as buying a home, starting a business, getting married or having children, due to their loans. Borrowers often reduce retirement savings to manage debt, which can limit long-term wealth accumulation.
Student loan debt has been associated with mental health issues, including increased depression, anxiety and reduced quality of life.
The column notes that the $60,000 debt could be paid off over two years using annual exemptions, assuming the limit remains similar or increases slightly in 2027. Paying the full amount in one year requires filing a gift tax return but is unlikely to incur taxes, as the lifetime exemption for 2026 is $15 million.
The second inquiry involves selling gold coins inherited nine years ago after the reader's mother passed away.
The reader questions whether to sell given current high gold prices. The column advises on storage, insurance and tax considerations. Gold coins serve as a hedge against inflation and a portable form of wealth.
