AmyC
Expert Alumni

Education

You only get a tax credit when you spend your money that has been taxed. Since you did not spend your money, there is no tax credit.

 

The IRS states:

Expenses Cannot Be Paid with Tax-Free Funds

You cannot claim a credit for education expenses paid with tax-free funds. You must reduce the amount of expenses paid with tax-free grants, scholarships and fellowships and other tax-free education help.

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