What payments are considered qualified for tax credits and tax deduction?

Qualified payments for calculating tax credits/deductions include the following:

• Personal earnings
• Personal savings
• Loans
• Gifts
• Inheritance

Ineligible payments for calculating tax credits/deductions:

• Grants
• Scholarships
• Tax-free distributions from an Education IRA
• Tax-free employer provided educational assistance
• Other forms of financial aid (which you are not required to repay)