fees for lifetime learning credit

[Bill Tubbs]

Client applied to multiple graduate schools this past year, to the tune of $2000+. Would application fees be a valid fee for the Lifetime Learning Credit? It (application fee) is a fee required for enrollment; in order to take any classes. She did end up being accepted at at least one school, if that matters.

Bill

[taxea]

is the app fee listed in instructions as a qualified expense?

[Jesse]

Let's see....

It says:

Qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution.

Related expenses. Student-activity fees are included in qualified education expenses only if the fees must be paid to the institution as a condition of enrollment or attendance.

However, expenses for books, supplies, and equipment needed for a course of study are included in qualified education expenses whether or not the materials are purchased from the educational institution.


Expenses That Do Not Qualify

Qualified education expenses do not include amounts paid for:

Insurance,

Medical expenses (including student health fees),

Room and board,

Transportation, or

Similar personal, living, or family expenses.

This is true even if the amount must be paid to the institution as a condition of enrollment or attendance.

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I don't see it specifically stated. So does that mean you can take it? Or you can't take it? Maybe I missed it?

[Gene V]

It says:


However, expenses for books, supplies, and equipment needed for a course of study are included in qualified education expenses whether or not the materials are purchased from the educational institution.





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I think Bill is talking about the learning credit. I believe the books must be purchased
from the education institution.

Learning Credit:

Related expenses. Student-activity fees and expenses
for course-related books, supplies, and equipment are
included in qualified education expenses only if the fees
and expenses must be paid to the institution as a condition
of enrollment or attendance.

[Jesse]

I think Bill is talking about the learning credit. I believe the books must be purchased
from the education institution.

Learning Credit:

Related expenses. Student-activity fees and expenses
for course-related books, supplies, and equipment are
included in qualified education expenses only if the fees
and expenses must be paid to the institution as a condition
of enrollment or attendance.

I stand corrected. It's not a student activity fee, it's an application fee. It's required but is not a course-related book, supply, or equipment, so I would say no lifetime learning credit, agree?

Depending on circumstances - graduate student - Schedule A, maybe, maybe not?

[Bill Tubbs]

not specifically state

I don't see it specifically stated. So does that mean you can take it? Or you can't take it? Maybe I missed it?

I didn't see it specifically stated either. At least I now know I haven't lost it... well, at least not totally.

Regarding Sch A -- the expense is for a new line of work, so I don't think it fits there as Unreimbursed Employee Expense.

Bill