Tax Benefits of Qualified Education Expenses
Did you know that claiming "qualified" education expenses on your tax return lowers the amount of tax you owe?
Qualified expenses include
1. Amounts paid for tuition, fees and other related expense for an eligible student that are required for enrollment or attendance at an eligible educational institution.
2. Eligible expenses also include student activity fees you are required to pay to enroll or attend the school. For example, an activity fee that all students are required to pay to fund all on-campus student organizations and activities.
3. Expenses for books, supplies and equipment the student needs for a course of study are included in qualified education expenses even if it is not paid to the school. For example, the cost of a required course book bought from an off-campus bookstore is a qualified education expense.
Expenses that Do Not Qualify
1. Room and board
2. Insurance
3. Medical expenses (including student health fees)
4. Transportation
5. Similar personal, living or family expenses
6. Expenses for sports, games, hobbies or non-credit courses do not qualify for the education credits or tuition and fees deduction, except when the course or activity is part of the student’s degree program.