Employer paid education expenses, paid out of pocket for books

[lwyr25]

My employer has a program with a University where the employer pays a certain dollar amount and the University will match as long as a certain GPA is met. I paid out of pocket for my books. When I plug in the 1098-T information and it takes into account the scholarship (which was the Universities part) and my book expenses it keeps telling me I don't qualify. Is there no way to include the cost of books I paid?

[Hal_Al]

It makes a difference what degree you are working on.  There are two education  credits, the American Opportunity Credit (AOC) and the Lifetime Learning Credit (LLC).  Books are not a qualified expense for the LLC.  They are for the AOC. The AOC is very generous, dollar for dollar on the first $2000 of expenses (25% on the 2nd $2000, $2500 max).  AOC is only available to half time or more undergrads/vocational students.  But, there is a 4 time  limit for  claiming the AOC.  You may not want to waste one of those times on a few dollars for books.

That said, after entering your 1098-T, you will be asked if you had any book expenses. Answer yes and TT will give you a screen to enter books. 

[BrittanyS]

You can claim books under the American Opportunity Tax Credit.  The requirements for the AOTC are as follows:

To be eligible for AOTC, the student must:

• Be pursuing a degree or other recognized education credential
• Be enrolled at least half-time for at least one academic period* beginning in the tax year
• Not have finished the first four years of higher education at the beginning of the tax year
• Not have claimed the AOTC or the former Hope credit for more than four tax years
• Not have a felony drug conviction at the end of the tax year

None of the expenses paid by an employer can be used as a basis for the AOTC or the Lifetime learning credit.  If you have exceeded the requirements for the AOTC, you are receiving a notice saying you do not qualify.  

For more information on the AOTC, see the link below:

American Opportunity Tax Credit

@lwyr25