Fulbright hays Scholarship

[Got2csun]

Client's wife is presently a fellow in Mexico..she is a PhD candidate at Cornell. I have a break out of the payments for her Fulbright Hays and I'm wondering what qualifies as education expenses...On one hand she has to live (maintenance allowance) to accomplish the purpose of her grant and also she has to travel to get there to do the same. Are these qualified education expenses....I have been reading Pub 970...I would like to heard from other "office mates" how you handle these situations...Thanks John

[taxea]

travel, housing and other personal expenses are not deductible as tuition expenses, however, check the scholarship/grant. If it pays for these items deduct them from the grant before you deduct tuition and books. That will probably give you a higher tuition credit.