Is Lifetime Learning Credit allowed for High School concurrent enrollment expenses paid in full with scholarship?

[ajgomezmartinez]

Is high school curriculum paid by high school to eligible post-secondary institution eligible for Lifetime Learning Credit?

[Hal_Al · Accepted solution]

No. If paid in full with scholarship, you are not out any money, so you do not get a credit.  But the scholarship is tax free, since it paid for qualified expenses.

For others (who do pay out of pocket) reading this:

The ability of the parent of a high school student to claim the education credit is limited.  If these courses are provided by an eligible college, this cost qualifies for the Lifetime Learning Credit (LLC). The school must have policy of granting college credit for that course, already taken, if the student ever enrolls there. In other words, it is a requirement that the course be a college credit course, even if the student isn't currently a college student. It’s not that the student is post-secondary, it’s that the course is post secondary. Books are not a qualifying expense, unless included in the course fee. You must have paid tuition to the college and not the high school in order to claim the expenses on your return.

High school students are not usually eligible for the more generous American Opportunity Credit, unless they are officially enrolled as a degree candidate.  

[MindyB]

No, you cannot claim the Lifetime Learning Credit (LLC) for these expenses because the IRS requires you to have "qualified education expenses" paid out-of-pocket. If your tuition is paid in full by a tax-free scholarship or directly by your high school, your adjusted qualified expenses drop to zero. 

According to IRS Publication 970, you must subtract any tax-free educational assistance, including scholarships and payments made by an employer or governmental agency, from your total tuition costs before calculating the credit.