It depends which credit you are trying to claim.
For AOTC only, expenses for books, supplies, and equipment the student needs for a course of study are included in qualified education expenses even if it is not paid to the school. For example, the cost of a required course book bought from an off-campus bookstore is a qualified education expense.
See our Education Credits Frequently Asked Question page for more information.
Q2. How does AOTC differ from the existing LLC?
A2. Unlike the other education tax credits, the AOTC is allowed for expenses for course-related books, supplies, and equipment that are not necessarily paid to the educational institution but are needed for attendance. It also differs because you can claim the credit for four tax years instead of no limit on the number of years you can claim the LLC. See Education Credits: AOTC and LLC for more information.
Education Credits
