If you are eligible to deduct educational expenses and are also eligible for the lifetime learning credit, then it is possible to claim both, as long as you do NOT use the SAME educational expenses to claim both benefits. Your may want to allocate some of your expenses to the deduction and others to the credit. This is sometimes desirable because a qualifying expense for one benefit may not be a qualifying expense for the other tax benefit. For example, the cost of course-related books ordinarily qualifies for the deduction, but not for the lifetime learning credit. For more information, refer to Publication 970, Tax Benefits for Education; Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits); and Tax Topic 513, Educational Expenses.

The amount of an education credit is determined by the amount of qualified tuition and related expenses you paid for each eligible student and the amount of your Modified Adjusted Gross Income (MAGI). For more information, refer to Form 8863 (PDF), Education Credits, Publication 970, Tax Benefits for Education, or Tax Topic 605, Education Credits.

Expenses that qualify for an education credit are qualified tuition and related expenses required for enrollment or attendance at an eligible educational institution. An eligible educational institution includes most accredited colleges, universities, vocational schools, or other post-secondary educational institutions eligible to participate in the student aid programs administered by the Department of Education.

Qualified expenses do not include expenses student activities, athletics (unless the course is part of the student's degree program), for room and board, insurance, transportation, or similar personal, living, or family expenses. The cost of books and equipment are generally not qualified expenses because eligible educational institutions usually do not require that the cost of the books or equipment be paid to the institution as a condition of the student's enrollment or attendance at the institution.

No. Expenses paid to attend high school do not qualify for the education credits because a high school is not an eligible educational institution. In general , an eligible educational institution is an accredited college, university, vocational school, or other post-secondary educational institution including accredited, public, nonprofit, and proprietary (private-owned, profit-making) postsecondary institutions. Additionally, in order to be an eligible educational institution, the school must be eligible to participate in a student aid program administered by the Department of Education. For more information, refer to Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits), Publication 970, Tax Benefits for Education, or Tax Topic 605, Education Credit.

No. A married individual filing a separate return can not claim the Hope Credit or the Lifetime Learning Credit.

For more information, refer to Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits), Publication 970, Tax Benefits for Education, or Tax Topic 605, Education Credits.

References:

• Publication 970, Tax Benefits for Education
• Tax Topic 605, Education Credits
• Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits)

You can not claim a credit for the amount of higher education expenses paid for with a tax-free scholarships.

For more information, refer to Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits). Publication 970, Tax Benefits for Education, and Tax Topic 605, Education Credits, or Tax Topic 421, Scholarship and Fellowship Grants.

Yes, fill out Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits).

You must reduce the total qualified expenses by the amount of any tax-free educational assistance. Do not reduce the qualified expenses by amounts paid with the student's earnings, loans, gifts, inheritances, and personal savings. Also, do not reduce the qualified expenses by any scholarship reported as income on the student's return or any scholarship which, by its terms, can not be applied to qualified tuition and related expenses.

For more information, refer to Publication 970, Tax Benefits for Education or Tax Topic 605, Education Credits.

References:

• Publication 970, Tax Benefits for Education
• Tax Topic 605, Education Credits
• Tax Topic 513, Educational Expenses
• Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits)

Higher education expenses paid by the proceeds of a government subsidized loan expenses may qualify for the credit if you must repay the loan. The credit is claimed in the year in which the expenses are paid, not in the year in which the loan is repaid.

For more information, refer to Form 8863 (PDF), Education Credit (Hope and Lifetime Learning Credits), Publication 970, Tax Benefits for Education, or Tax Topic 605, Education Credits.