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Is a Computer a Qualified Expense for AOTC
Publication 970 says, "equipment needed for a course of study" is a qualified expense. Not sure if schools technically "require" a laptop, but I don't see how any college student can get by without one with so much schoolwork being submitted online. A laptop definitely seems "needed" to survive college today. Does anybody have any insight on how the IRS views this today and whether a laptop (very much needed) can be claimed as a qualified expense for the American Opportunity Tax Credit? Thanks.
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Is a Computer a Qualified Expense for AOTC
You're not going to get a clear cut answer.
The IRS says: "Whether an expenditure for a computer qualifies for the credit depends on the facts. An expenditure for a computer would qualify for the credit if the computer is needed as a condition of enrollment or attendance at the educational institution".
https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers
Apparently, the tax court has ruled on this.
The Tax Court concluded that the cost of a computer is not eligible for the AOTC unless the school requires the student to have one.
Some have translated this to: The IRS has indicated a computer does qualify if it is needed for attendance at the educational institution. Generally, in this day and age, a computer is necessary ("required").
Be assured: "everybody is doing it".
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Is a Computer a Qualified Expense for AOTC
Yes, a laptop is a qualified expense for the American Opportunity Credit because no student can complete their coursework without it.
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