Qualified Education Expenses

If you think you may be eligible for education tax credits this year, you should keep records of the qualified education expenses paid during the year. Keep in mind, qualified education expenses paid on behalf of a student by someone other than the student are treated as paid by the student or by the parent if the student is a dependent, therefore you should include any expenses paid for by another person such as a grandparent or other relative. Qualified education expenses include: tuition and fees required for the student's enrollment or attendance at an eligible educational institution; course-related books, supplies and equipment needed for a course of study (for Lifetime Learning Credit these expenses must be required to be paid to the institution as a condition of enrollment or attendance). Student activity fees, athletic fees or other expenses unrelated to the academic course of instruction may be deductible only if paid to the institution as a condition of enrollment or attendance. Personal expenses such as room and board, insurance, medical expenses, transportation, sports and hobbies are not deductible. You will receive a Form 1098-T from your educational institution reporting to you either payments received or amounts billed during the year. You must report actual amounts paid during the year on your tax return. If that amount differs from what is reported on your 1098-T, please be sure to note that when submitting your tax documents to our office.