What are Qualified Education Expenses?

Qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution.

There are small but important differences between the American Opportunity Credit and the Lifetime Learning Credit when trying to figure out which expenses can be claimed as qualified expenses.

Qualified education expenses under the American Opportunity Credit are:

• Tuition and student-activity fees are included only if the fees are paid to the institution asa condition of enrollment and attendance.
• Expenses for books, supplies, and equipment needed for a course of study whether they are purchased from the educational institution or not.

Qualified education expenses under the Lifetime Learning Credit are as follows:

• Tuition, student-activity fees, and expenses for course-related books, supplies, and equipment only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance
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