Qualified education expenses

As defined in IRS Publication 970, qualified expenses are tuition and expenses related to enrolling in and attending post-secondary education. These expenses will need to relate to an academic period that begins during the tax year or in the 1st 3 months of the following year.

Disqualified expenses for education tax credits

The following expenses aren't qualified expenses:
  • Room and board
  • Transportation
  • Insurance
  • Medical expenses
  • Student fees, except when they are a condition of enrollment or attendance
  • Expenses paid with non-taxable funds or tax-free educational assistance
  • Same expenses used for any other tax deduction, credit, or educational benefit

Qualified expenses for the American Opportunity Tax Credit (AOTC)

With the AOTC, qualified tuition and related expenses also include books, supplies, and equipment not purchased from the educational institution.

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