Paying for Books and Materials

[lilly54]

I received a 1098-T. I am taking classes toward a professional certificate. I am not in an undergrad program (I have an undergraduate degree) but I believe I will be eligible for the American Opportunity Grant. I am not sure what the Lifetime Learning Credit is, which is referenced in the help (which is most unhelpful).  My questions are as follows. 

1. TT asks about 2 things:

Books and materials required to be purchased from the school

Books and materials not required to be purchased from the school

In my case, I have books that were required to be purchased but not from the school (I don't believe they even have these books). Can I provide them under "Books and materials not required to be purchased from the school"?

2. While not relevant for 2022, in 2023 I will have software that was required to be purchased. Will I be able to put that under the same category next year?

3. What is the Lifetime Learning Credit and is it relevant to me in this situation?

[MarilynG1]

1. Yes, include the costs of books and materials not required to be purchased from the school.   You can put the software you purchase next year in the same category.

2. Yes, the Lifetime Learning Credit is relevant to you, since you are not in an undergrad degree program and won't be eligible for the AOC. 

There's no limit on the number of years you can use the Lifetime Learning Credit for undergraduate, graduate and professional degree courses, including ones to improve job skills.  Be sure to include ALL related Education Expenses, to increase the amount of the credit. 

• Maximum credit is $2,000 per tax return
• Can be used when you're only taking one class at an eligible educational institution
• You don't need to be working toward a degree

The credit is applied to any tax you owe, up to $2,000.  So, if your tax is $1500, for example, you could get a credit of $1500, bringing your tax to $0. However, the balance of the $2,000 maximum credit that is unused is not refundable. 

@lilly54