What are qualified education expenses for the American Opportunity and Lifetime Learning credits?
These expenses qualify, as long as they are required to enroll in or attend a qualified educational institution:
- Tuition, if paid to the institution
- Student-activity fees, if paid to the institution
- Books, supplies, and equipment, if required to be purchased from the institution as a condition of enrollment or attendance (Lifetime Learning Credit)
- Books, supplies, and equipment, regardless of where purchased (American Opportunity Credit)
Fees paid for non-credit courses and sports (or similar activities) don't qualify unless:
- The course or activity is included in the student’s degree program, or
- The course helps the student acquire or improve job skills (Lifetime Learning Credit only)
These expenses are not considered qualified education expenses for either credit:
- Housing, room and board
- Insurance, including student health fees
- Medical or dental expenses
- Entertainment, babysitting, and other personal expenses
Qualified education expenses paid on behalf of the student by someone other than the student (such as a relative), are treated as paid by the student. Qualified education expenses paid (or treated as paid) by a student who is claimed as a dependent on your tax return, are treated as paid by you.