1098 -t

[bekzm]

Have 2 different clients that have the same thing about box 8 or 9 checked. The amounts billed and paid for the course is $977 and with books it is $1310 he paid. One of the clients is asking about the computer to deduct cause it was an online class. Wow had to buy a computer to take the course. Box 8 or 9 is not marked. Already a teacher so taking extra classes. Do I take the lifetime the course amount and the computer or neither....late nights can't think.
Thanks

[Dusty2004]

Argued both ways

I have seen this argued both ways. Here is my take on it. Being a newbee here you may want to wait for other comments before deciding.

Question 1 I would ask is does the course require them to have a computer / laptop. Some argue that yes - they are taking an online course - I would say it would depend on what the criteria for the class was. If they require a student who is on campus and taking the same class to have a computer then I would say it is required if the on campus class does not require a computer then I would say no.

But that said - for the lifetime learning credit you cannot take books / computers / etc unless required by the college and you have to purchase them from the college.

Dusty

[bekzm]

Thanks

That is a good point - can not take classes on line without a computer and driving a ways to take a class that is not offered from his schedule is why he took it to finish. But my concern was not one of the boxes is marked for a full time student or gradute and he is 20 yrs old and a teacher so figure was trying to go for his masters. So lifetime or schedule A for job related. Too many rules to remember when they redo stuff....lol

[Questionguy101]

Talking about an 1098T, I always have problem to make a judgment as to whether the payments made by the parents should be classified as "tuition and fees" or "room and board expense". Of course, it would be more beneficial for the parents to classify their payments as "tuition as fee" since they can claim the education credit in that way. But do they really have the freedom to make the determination? I always incline to classify them as "room and board expense". I am interested in knowing how the other tax professionals handle the situation.