Hello! Why is it that I cannot deduct my textbook expenses that were purchased off-campus for graduate school? Is it because of the American opportunity credit?

[charmainebg32]

Read that textbooks that were required to be purchased from the campus count as a deductible, but those that were not required to be purchased from the campus do not count.

[MollsBBU · Accepted solution]

The American Opportunity credit allows you to deduct books, supplies, and equipment needed for course of study included whether or not purchased from the educational institution.

It is the Lifetime Learning Credit that limits these deductions: "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."

To review in the program which credit or deduction the education optimizer has chosen for you, please do the following:

1. Search for education in your TurboTax program's search box. 
2. Then, select the "jump to" option in the results. 
3. You will land on Your Education Expenses Summary
4. Click the blue button to Continue
5. You'll see Next, We'll See Which Deduction or Credit Will Save You the Most. This screen will also list the three education tax credits and if you qualify for each
6. Click the blue button to Maximize my Education Tax Break
7. You'll see We're Maximizing Your Education Tax Breaks. Click Continue
8. You'll see Good News! You Qualified for the [tax break].

For more information:

1. You may click Show Me Results for What Else I Qualify For
2. You will see We also calculated these other options, but they would have saved you less money.

If you have any other questions, please comment back.