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• Was free of any federal or state felony conviction for pos- sessing or distributing a con- trolled substance as of the end of the tax year. 2. Lifetime learning credit. A stu- dent who is enrolled in one or more courses at an eligible educa- tional institution. 3. Student loan interest deduc- tion. A student who was enrolled at least half-time in a program leading to a postsecondary de- gree, certificate, or other recog- nized educational credential at an eligible educational institution. Half-time student: A student who is enrolled for at least half the full-time academic workload for the course of study the student is pursuing, as deter- mined under the standards of the school where the student is enrolled. Modified adjusted gross income (MAGI): 1. American opportunity credit. Adjusted gross income (AGI) as figured on the federal income tax return, modified by adding back any: • Foreign earned income exclu- sion, • Foreign housing exclusion, • Foreign housing deduction, • Exclusion of income by bona fide residents of American Sa- moa, and • Exclusion of income by bona fide residents of Puerto Rico. 2. Coverdell education savings account (ESA). Same as Ameri- can opportunity credit in this cate- gory. 3. Education savings bond pro- gram. Adjusted gross income (AGI) as figured on the federal in- come tax return without taking into account any savings bond interest exclusion and modified by adding back any: • Foreign earned income exclu- sion, • Foreign housing exclusion, • Foreign housing deduction, • Exclusion of income by bona fide residents of American Sa- moa, • Exclusion of income by bona fide residents of Puerto Rico, • Exclusion for adoption benefits received under an employer's adoption assistance program, and • Deduction for student loan in- terest. 4. Lifetime learning credit. Same as American opportunity credit in this category. 5. Student loan interest deduc- tion. Adjusted gross income (AGI) as figured on the federal income tax return without taking into ac- count any student loan interest de- duction, and modified by adding back any: • Foreign earned income exclu- sion, • Foreign housing exclusion, • Foreign housing deduction, • Exclusion of income by bona fide residents of American Sa- moa, and • Exclusion of income by bona fide residents of Puerto Rico. Phaseout: The amount of credit or deduction allowed is reduced when the modified adjusted gross income (MAGI) is greater than a specified amount of income. Qualified education expenses: See the pertinent chapter for specific items. 1. American opportunity credit. Tuition and certain related expen- ses (including student activity fees) required for enrollment or at- tendance at an eligible educational institution. Books, supplies, and equipment needed for a course of study are included even if not pur- chased from the educational insti- tution. Doesn't include expenses for room and board. Doesn't in- clude expenses for courses involv- ing sports, games, or hobbies (in- cluding noncredit courses) that aren't part of the student's postse- condary degree program. 2. Coverdell education savings account (ESA). Expenses related to or required for enrollment or at- tendance of the designated benefi- ciary at an eligible elementary, secondary, or postsecondary school. Includes computer or pe- ripheral equipment, computer soft- ware, or Internet access and rela- ted services. Many specialized expenses included for K–12. Also includes expenses for special needs services and contributions to a qualified tuition program (QTP). 3. Education savings bond pro- gram. Tuition and fees required to enroll at or attend an eligible edu- cational institution. Also includes contributions to a qualified tuition program (QTP) or Coverdell edu- cation savings account (ESA). Doesn't include expenses for room and board. Doesn't include expen- ses for courses involving sports, games, or hobbies that aren't part of a degree or certificate-granting program. 4. IRA, early distributions from. Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educa- tional institution, plus certain limi- ted costs of room and board for students who are enrolled at least half-time. Also includes expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance. 5. Lifetime learning credit. Tuition and certain related expenses re- quired for enrollment or attend- ance at an eligible educational in- stitution. Student activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the insti- tution as a condition of enrollment or attendance. Doesn't include ex- penses for room and board. Doesn't include expenses for cour- ses involving sports, games, or hobbies (including noncredit cour- ses) that aren't part of the stu- dent's postsecondary degree pro- gram, unless taken by the student to acquire or improve job skills. Publication 970 (2022) Page 75