I have living expenses, books and tuition that are legitimate college expenses for my daughter. I pay for most of these costs directly but my daughter pays for some out of her summer earnings.
My question is: If my daughter pays for her books, can I use that as an expense on my tax return? She is my dependent.
You might be able to claim an Education credit (See IRS Publication 970) for the tuition and fees you pay for your dependent daughter.
Books, unless required by the college and billed on their college invoice -- not very common -- are not allowed for the credit.
If you are using a 529 plan write back as the answer might change.
Short answer: regular college textbooks are not qualified expenses for education credits or tuition and fees deduction, unless they can only be purchased directly from the school and are required to enroll.
Note that living expenses also do not qualify.
But in general, qualified expenses (tuition and mandatory fees) paid by a dependent of yours are treated as paid by you for credit/deduction purposes.
IRS Pub 970 has a clear explanation with examples and flowcharts for most situations.
-Mark Bole
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