My girlfriend currently works at Energizer full-time and also attends graduate school for a master's degree in communication. I am curious whether she is eligible for the lifetime learning credit or Hope credit (8863 form). Last year, she spent over $14,000 on tuition and related school expenses. At the end of each semester, Energizer reimburses her for 25% of the tuition costs. At the end of her 2 year education, Energizer will pay her all of the remaining costs. These reimbursements do not appear on her W2 form and thus are tax exempt. I should also note that her pursuit of a master's degree is considered to help her work skills as I have noticed that this is a requirement for such a credit. Thanks for the help.