Eligible Students and Qualifying Expenses

The requirements for claiming these credits include:

• filing status and modified adjusted gross income (AGI) of the taxpayer
• whether the student and the educational institution are eligible
• what the expenses were for—only tuition and related expenses qualify
  • related expenses are course related books and materials, supplies and equipment, and activities.

Students who are ITIN holders must meet the resident requirement as described in Publication 519 in order to qualify for these credits.

This table shows how education credits can be applied.

If the taxpayer...	Then only...
Claims an exemption on the tax return for a dependent who is an eligible student	The taxpayer can claim the American Opportunity or Lifetime Learning Credit based on that student's expenses. The student cannot claim the credit
Does not claim an exemption for a dependent who is an eligible student (even if entitled to the exemption)	The student can claim the American Opportunity or Lifetime Learning Credit. The taxpayer cannot claim the student's expenses