Can I return money to parents even when we didn't have a formal agreement in the US?

Question

For example, if I return US$30,000 to my parents, considering that they lent me money for my university tuition, can that be considered to be returning borrowed money, even though there were no formal written borrow agreement?
Otherwise, isn't it true that if I give to my parents, then it is considered a gift, and subject to a gift tax?
Or is the line quite blurry, such as, if they are going to use that money to fix the roof of the house, I also can just pay for the repair job myself, considering that I sometimes go home and stay there, then it wouldn't be considered a gift and subject to gift tax?

JTP - Apologise to Monica · Accepted Answer

As a comment stated, you can give each parent $15,000 per year per parent. That’s $30,000 right now and $30,000 per year as soon as the new year starts.
This requires no paperwork or any reporting the IRS.
If you do go over, there’s a form 709, and the amount goes against your lifetime exemption of $11M+. Still no actual tax due.

Orange Coast- reinstate Monica · Answer

A verbal agreement can be a legal agreement. If it was a loan, then you can pay it back as promised.
That said, there are IRS rules for family loans. The "$100k loophole," explained in this article, may be helpful.

Can I return money to parents even when we didn't have a formal agreement in the US?

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