Qualified expenses include ordinary and necessary expenses paid in connection with Books, supplies, equipment including computer equipment, software, and services, and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator.

Qualified expenses do not include expenses for home schooling or for no athletic supplies for courses in health or physical education.

            Following amounts will reduce your qualified expenses.

• Tax-free interest on U.S.seried EE and I savings bonds
• Tax-free portion of a distribution from a qualified tuition program(QTP)
• Tax-free portion of a distribution from a Coverdell education savings account (ESA)