I am in grad school and my job paid my tuition but they didn't pay for my books. I'm trying to deduct the book costs but I get a message that I'm not allowed to.

[kerriP · Accepted solution]

Did you receive a 1098-T from the school showing your tuition etc.? If your books were bought from the institution and required,  then  you might qualify for the Lifetime Learning Credit.  This credit  is available for qualified education expenses for higher education and is available as part of a post secondary degree program or when classes are taken to improve job skills.

Student  activity fees and expenses for course-related books, supplies, and equipment are included in qualified  education expenses only if the fees and expenses are paid to the institution as a condition of enrollment or attendance.

The credit starts being phased out when income is $56,000 for single filers and $112,000 for Married filing Joint returns.

The other credit, The American Opportunity Credit is available for undergrad only.