Qualified Higher Education Expenses are expenses incurred by students pursuing post-secondary education. These expenses include tuition, fees, books and supplies required for attendance of a college, university, or vocational school.

QHEEs must be related to enrollment or attendance at the school and directly benefit the student. Eligible expenses also include course-related books and supplies that are necessary for participation in a course such as laboratory fees and other related technology, such as computers and laptops. Expenses that are not eligible include living situations, transportation, insurance, health fees, club fees, student activity fees, and loan origination fees.

Taxpayers may claim QHEEs by using Form 8917 with their completed tax return. This form is used to calculate the tuition and fees deduction, an above-the-line deduction, providing a break on taxable income. Additionally, filers may apply for the American Opportunity Tax Credit and the Lifetime Learning Credit as an alternative. The American Opportunity Tax Credit allows students to claim up to $2,500 per academic year, while the Lifetime Learning Credit can allow up to $2,000. These credits are applied directly to the tax return and can reduce the amount of taxable income.

Qualified Higher Education Expenses can present a financial burden, but there are some options for tax benefits that can help offset the cost. By understanding eligible expenses and utilizing available credits, taxpayers can lower their tax liability and save money.