American Opportunity Credit Questions

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That’s because most of those are not qualified expenses, or in a couple of cases are qualified expenses only for certain tax benefits.</p>

<p>Off the top of my head:
Travel = not a qualified expense.
Living Expenses: not a qualified expenses for the tax credits or calculation of non taxable scholarships. But is a qualified expense for 529 account withdrawals (actual room and board if living on campus, up to room and board allowance in COA if living off campus).
Books: a qualified expense if required by all students taking a class.
computer: Not generally a qualified expense except currently it is for 529 account withdrawals.</p>

<p>IRS 970 has more detailed information about qualified expenses. You have to look at each separate benefit to determine what is or is not a qualified education expense for that specific benefit. They vary.</p>