The educational expenses that qualify for the Lifetime Learning Credit are tuition and certain related expenses that you have to pay in order to be enrolled in a course at an eligible educational institution. You do not have to be a full-time student and you do not have to be pursuing a degree. The cost of a course for acquiring or improving your job skills, for example, would qualify as an educational expense for this credit.
For purposes of this credit, eligible educational institutions include virtually all accredited postsecondary institutions, including colleges, universities, vocational schools, or others that are eligible to participate in a student aid program administered by the U.S. Department of Education. These institutions can be public or privately owned, and include nonprofit organizations.
Tuition, or the amount you pay for the course itself, is a qualified expense. Qualified related expenses include student-activity fees and expenses, provided that they must be paid as a condition of enrollment or attendance. Qualified expenses also include books, supplies, equipment, and other materials you need for the course.
There are some expenses related to education that do not qualify for the Lifetime Learning Credit. For example, if you are studying at a college or university, your expenses for room and board do not qualify for this credit. Insurance, medical expenses, transportation, and similar personal or living expenses do not qualify either.
If you pay for your education with the proceeds of a loan or other money you borrow, you can still claim the credit. But you cannot claim a credit for expenses you pay with a tax-free scholarship, grant, or employer-provided educational assistance.
Who is an eligible student?
The only requirement for claiming the Lifetime Learning Credit is that the student is enrolled in one or more courses at an eligible educational institution. The courses do not have to be part of a program to obtain a degree or other certification. A one-time course that you take to learn a new skill, for example, would qualify you as an eligible student.
To claim the credit, the student must be yourself, your spouse, or a dependent you can claim on your tax return.