Education expenses can be complex, but we'll simplify them for you. Here are examples of what you can and can't deduct:
You can deduct:
- Tuition
- Enrollment fees
- Expenses paid to school, on condition of enrollment (lab fees, for example)
- Certain books, supplies, and course-related equipment (for American Opportunity Credit only)
- Expenses listed above (for the following semester), as long as the semester begins in the first three months of 2024
- Education expenses paid with cash, checks, credit cards, and savings accounts
- Education expenses paid with loans, gifts, and inheritances
You can't deduct:
- Room and board
- Fees and materials for non-degree courses (sports, games or hobbies), except when the course or activity is part of the student’s degree program. For the Lifetime Learning Credit only, these expenses qualify if the course helps the student acquire or improve job skills.
- Insurance
- Medical expenses or student fees
- Transportation or mileage
- Fees for maintaining or acquiring a license (broker, CPA, etc.)
- Tutoring expenses
- Private high school or grade school fees
- High school or private school uniforms
- Undergraduate and graduate application fees
- Daycare expenses
- Homeschool expenses
- Contributions to a student's Coverdell Education Savings Account
