Tax Resources

Qualified Education Expenses

The concept of qualified education expenses is necessary when claiming education tax credit such as the Hope education tax credit or Lifetime learning tax credit. There are many requirements for eligibility for Hope education tax credit and Lifetime learning tax credit. Qualified education expenses are just one of the many qualifications.

What are qualified education expenses?

Qualified education expenses are:

  • tuition and fees required for enrollment or attendance at an eligible educational institution

Fees for:

  • course related books
  • student activity fees
  • equipment

are included in qualified tuition and related expenses only if the fees must be paid to the institution as a condition of enrollment or attendance.

Are room and board qualified education expenses?

No. Room and board are not considered qualified educational expenses.

Prepaid tuition and related expenses

If the taxpayer prepaid qualified tuition and related expenses for an academic period that begins in the first three months of the following year, he or she can use the prepaid amount in figuring the education tax credit.

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