Eligible Expenses:
Tuition and Fees: Amounts paid for enrollment or attendance at an eligible educational institution.
Course-Related Expenses: For the American Opportunity Tax Credit (AOTC), this includes books, supplies, and equipment needed for a course, even if not purchased directly from the institution.
Non-Eligible Expenses:
Room and Board: Costs for housing and meals are generally not qualified.
Insurance and Medical Expenses: Premiums and health-related costs are excluded.
Transportation: Travel expenses to and from the institution are not covered.
Personal Expenses: Other personal, living, or family expenses do not qualify.
For comprehensive details, refer to IRS Publication 970, "Tax Benefits for Education," which provides in-depth information on qualified education expenses and related tax benefits.
Understanding these guidelines ensures that taxpayers can accurately claim education-related tax benefits and remain compliant with IRS regulations.