@tonybeo Your link to journalinfoaccountancy.com really holds no legal weight, because it's not an official IRS website. It's the interpretation of the IRS regs by a non-IRS individual or entity. Whereas the link to the IRS website does hold weight. In fact, it holds all the weight.
In a nutshell, either way you go doesn't matter to the IRS. But it could matter to you. You just have to pick the way that is more beneficial to you. If you get more money with a tax credit, than what you pay in taxes by declaring it used for non-qualified education expenses, then go that way.
Otherwise, if you pay less in taxes by declaring it for qualified expenses, then go that way. Either way, the IRS gets their cut and you get your tax break. It's just a matter of selecting the best option for you.
Of course, if the student qualifies to be claimed as a dependent on the parent's tax return, that's the parent's choice. The student has no choice really.
Glad to have that IRS link now, because it explains it in plain english without all that IRS tax speak gobble-de-gook.
