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norwen
Returning Member

are travel learning course fees deductible for AOC?

My daughter completed 2 travel learning courses at her university. They were graded and received credit towards graduation like any other course. Additional fees of $3,425 were charged and included in Box 2 (Amounts billed for qualified tuition and related expenses) of her 1098-T. Since the university included the fees in box 2 are they eligible as Qualified Education Expenses (QEE) for the American Opportunities Tax Credit (AOC)?

3 Replies
HelenC12
Expert Alumni

are travel learning course fees deductible for AOC?

Yes, from your description they appear to be tuition and may qualify for the American Opportunity Credit (AOC). However, there are other requirements to qualify for AOC. Enter the 1098-T into TurboTax and the program will determine if you qualify or not. 

 

Qualifications for claiming the American Opportunity Tax Credit are:

  • You paid qualified education expenses for higher education (see Related Information below).
  • You paid education expenses for eligible students.
  • The eligible student is you, your spouse, or a dependent for whom you claim an exemption.
  • Your modified adjusted gross income is $90,000 ($180,000 if married filing jointly) or less (The credit is reduced between $80,000 and $90,000 ($160,000 and $180,000).
  • You must be taking courses at an eligible education institution, which is any college, university, or vocational school with a student aid program administered by the US Department of Education.

You must be considered an eligible student:

  • You're enrolled at least half-time in a program leading to a degree, certificate, or other recognized credential.
  • You had at least one academic period beginning during the year.
  • You did not use the American Opportunity Tax Credit for more than three previous years.
  • You didn't complete the first four years of post-secondary education before the beginning of the year.

You aren't eligible to claim the American Opportunity Tax Credit if:

  • Your filing status is Married Filing Separately.
  • Taxpayer is listed as a dependent on another person’s return.
  • You and your spouse were non-resident aliens.
  • You have a felony drug conviction.

Related Information:

Source: TurboTax FAQ

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norwen
Returning Member

are travel learning course fees deductible for AOC?

We meet all the other requirements. I guess my real question was whether part or all of the fees for the course might be considered to include transportation expense, which is not considered a qualified education expense (QEE). The fees helped cover plane fare and lodging, which I consider travel. Is there a distinction between travel expenses and transportation expenses? Can I rely on the school properly classifying the entire course fee properly in Box 2 as "qualified tuition and related expenses"?

NCperson
Level 15

are travel learning course fees deductible for AOC?

if this makes it any easier on you, once Box 1 (you stated box 2, but did you mean box 1?) is over $4,000 it doesn't matter.  you'll get the $2500 AOTC credit.  Anything beyond $4000 in box 1 has no impact

 

are there other 1098T from other colleges? 

 

 

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