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What Are Qualified Education Expenses for Purposes of the AOTC?

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Question: What Are Qualified Education Expenses for Purposes of the AOTC?
Answer: There are two separate factors used in determining whether or not expenses are considered qualified education expenses for purposes of claiming the American Opportunity Tax Credit.

The first, is whether or not the school at which the expense is incurred is a qualified school. To be considered a qualified school, it must be a college, university, or vocational school eligible to receive financial aid from the U.S. Department of Education. There are two separate factors used in determining whether or not expenses are considered qualified education expenses for purposes of claiming the American Opportunity Tax Credit.

Second, the expense must fall into one of the following categories:
  • Tuition
  • Books, Equipment, or Supplies if required for attendance

Room and board are not eligible for the American Opportunity Tax Credit.

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