2013 Lifetime Learning Credits

[farfantaxconsultants]

My client received a letter from the IRS regarding his 2013 return. We prepared the form 8863 and included on line 27 the cost of a computer and peripheral equipment. Were we wrong in doing this. Publications that I looked at do not specifically prohibit the cost of a computer as they mention books, supplies and equipment. Will this item be thrown out.?

[Burke]

What did the letter say? For the LLC and the Tuition & Fees deduction, the course materials - books, supplies, equipment -- must be paid to the educational institution as a condition of enrollment. For the AOC, they do not. See TTB pages 12-4 & 12-5.

[farfantaxconsultants]

the letter said that the expenses that were reported were greater than the amount that appeared on the 2013 form 1098T that was issued by the college.