I entered Law school as grad student Fall 2022. Am I allowed to claim supplies, ie mainly books, if I use the Lifetime Learning Credit?

[xmasbaby0]

https://ttlc.intuit.com/community/credits-and-deductions/help/what-expenses-qualify-for-the-lifetime...

[whyme940]

I had already read the information provided in the link you posted.   I guess I am looking for the dumb down answer!  "Student activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses are paid to the institution as a condition of enrollment or attendance."  So the books and laptop that they required me to purchase cannot be listed as an expense because I didn't purchase thru the school?  What about the books bought thru the bookstore?  Is there nowhere these items can be claimed?

[ErnieS0 · Accepted solution]

No, you cannot claim any books for the Lifetime Learning Credit if they were not paid to the school as a condition of enrollment or attendance, Tax Expert Alumni @KarenJ says.

For American Opportunity Credit 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 the Lifetime Learning Credit, expenses for course-related books, supplies, and equipment can ONLY be qualified expenses if the fees and expenses are paid to the school as a condition of enrollment or attendance.

The books/materials need to be purchased from the school to qualify for the Lifetime Learning Credit.

The books/material can be purchased anywhere for the American Opportunity Credit.

See: The education expenses section asks whether I paid for books/materials required to be purchased from school, but these payments were made to Pearson's web service

[whyme940]

Thanks so much for replying, even though it isn't the answer I wanted to hear!  Grad school isn't cheap!   I guess there is no other place or way to claim the expenses?  

[KrisD15]

The only other way to claim those expenses would be if you were in the first four years of a degree in 2022 before entering Grad School and are eligible for the American Opportunity Tax Credit.  In that particular scenario, you are allowed to enter ALL education expenses for the year. 

You would have had to attend school earlier in the year working on your bachelor degree, not taken the American opportunity Tax Credit 4 times, and meet the other requirements of the credit. 

According to the IRS:

“Example 2. After taking classes at College V on a part-time basis for a few years, Shelly became a full-time student for the 2022 spring semester. College V classified Shelly as a second-semester senior (fourth year) for the 2022 spring semester and as a first-semester graduate student (fifth year) for the 2022 fall semester. Because College V didn't classify Shelly as having completed the first 4 years of postsecondary education as of the beginning of 2022, Shelly is an eligible student for tax year 2022. Therefore, the qualified education expenses paid for the 2022 spring semester and the 2022 fall semester are taken into account in figuring the American opportunity credit for 2022.”

IRS Pub 970

@whyme940