What are Qualified Expenses?
Tuition and fees, for any course or educational program that involves sports, games or hobbies, lab fees and other required course expenses that relate to an educational degree or certificate-granting program. These expenses must be incurred during the same tax year in which the bonds are cashed in. Note: Room/board expenses, books, and expendable materials (pens, notepads, etc.) do not qualify.
In general, tuition, room and board, books, equipment and fees necessary to attend an institution of higher education are considered qualified higher education expenses. Qualified higher education expenses also include expenses of a special needs beneficiary that are necessary in connection with his or her enrollment or attendance at an “eligible educational institution” as defined in the Code.
