exam fees & books for lifetime learning credit?

[Kea]

Client took a class for project management certification. Employer paid for training, but client paid for exam & study materials. Do those quality for the "fees" portion of Lifetime Learning Credit? I would have thought the tuition portion would have covered these. But since they were separated, I wasn't sure if I could count them.

(I searched Pub 970 for "exam" and only got "example." I also tried "test" but didn't get anything useful there, either.)

Thanks!

[Margaret CPA in OH]

My handy dandy QF states that books, supplies and equipment qualify if they must be paid to the eligible educational institution as a condition of the students enrollment or attendance at the institution. IRC Section 25A.

[Kea]

Thanks Margaret, I know that part. So, I guess the question becomes - "is the exam / books a requirement of the course?"

-In general, taking an exam (by itself) would not be a Lifetime learning credit item - right?

-Taking a class to prepare for the test would. And study materials required for that course would count.

-If you were only taking the exam & buying your own study references, then nothing counts towards LL credit.

At least that's the way my mid-April brain is thinking on this!

I'll ask client if exam is required for course or not.

Thanks!

[Margaret CPA in OH]

Aha, I should have read more carefully. Without reading the section 25A noted, I would say the exam cost would not be deductible nor would the study books be unless, as noted in QF, the books purchase are paid to the eligible... I would not consider the exam in the same 'class' as tuition and fees but maybe you could ask the question. In this case, I may lean to non-decuctible certainly without more info, probably from reading section 25A and checking with the institution. Your mileage may vary.

[Kea]

That's pretty much what I was thinking. If you take a class and are then required to take a test, the test fee would (theoretically) be part of the tuition. I just hadn't run into it in reverse.

In this case the class & study materials were just helpful for the test, but not required. And test not required for class. I voted no deduction & he was fine with that. He hadn't even included it originally. Didn't mention it until I asked if he had any education expenses. As he was answering my follow-up questions, he wrote - "you do realize I don't itemize."

Oh well, I tried to find a deduction. (But, why oh why, on 4/14???)

Thanks for helping me think through it correctly.

Is it 4/19 yet?