Volunteer Income Tax Assistance (VITA) Certification Practice Test

If a student receives a scholarship, which expense is not qualified for education credits?

1. Tuition and fees

2. Room and board

3. Textbooks

4. Course-related supplies

The correct answer is: Room and board

A scholarship typically provides funds to help cover educational expenses, but not all expenses qualify for education credits. In this case, room and board are considered personal living expenses rather than educational costs directly related to tuition or academic fees. Qualified expenses for education credits often focus on costs specifically associated with coursework, such as tuition, fees, textbooks, and supplies necessary for class. Tuition and fees directly correlate with the cost of courses taken. Textbooks are considered critical for course completion, and course-related supplies also fall within the scope of qualified educational expenses. Therefore, while the scholarship can cover all these costs, room and board is generally excluded when assessing eligibility for education credits.