No double education benefits allowed

You can’t take more than 1 education benefit for the same student and the same expenses. That means:

• You can't take the American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for the same student in the same tax year
• If you receive tax-free educational assistance, such as a grant, you need to subtract that amount from your qualified education expenses

Which education benefit to take

Take the education benefit that helps you the most, generally a credit that reduces your tax or increases your refund. Review all your options to find what helps you the most.

Check if you can claim an education credit.

How to adjust qualified education expenses

Generally, for each student:

1. Take the total amount of qualified education expenses paid for the student
2. Subtract the amount of tax-free educational assistance the student received
3. Use any remaining qualified education expenses to claim an education credit

Tip: Consider including a tax-free scholarship, fellowship or grant to your student’s income and then taking the full amount of the education credit.

When not to adjust expenses

You don’t need to reduce qualified education expenses by amounts paid with:

• Payments for services, such as wages
• Money from loans
• Gifts
• Inheritances
• Student's personal savings
• Scholarships or fellowships reported as income on the student's tax return when:
  • Scholarship or fellowship terms restrict the money’s use to costs of attendance that aren’t for qualified education expenses (such as room and board)
  • Money’s use isn’t restricted and may be used for qualified or not-qualified expenses

Forms and publications

• Form 8863, Education Credits
• Tax Benefits for Education, Pub. 970

Related

• Compare education credits
• Education credits: Questions and answers
• Eligible educational institution
• American Opportunity Tax Credit
• Lifetime Learning Credit
• EITC central
• Tax preparer toolkit
• Partner toolkit