The two education credits are the Hope credit and the Lifetime Learning credit. These two credits have some criteria in common, and some very big differences. You can only take the credit for your child's expenses if you claim that child's exemption on your tax return. However, you can count what your child paid as if paid by you. You are disqualified from both credits if your filing status is Married Filing Separate.
Eligible expenses are tuition, and fees required for enrollment or attendance.
This means books, equipment, supplies, and activity fees are eligible only if they are required to be paid to the institution as a condition of enrollment or attendance. Eligible schools include most accredited colleges, universities, vocational schools, or other accredited postsecondary educational institutions. Any school should be able to tell you if it is an eligible institution. You can take either credit for expenses paid with borrowed funds, student's earnings, gifts or inheritances. This means parents can claim the credit for tuition paid for by their child as long as they claim the child on their return.