My son did not get 1098T because we have tuition remission benefit that pays for his tuition. But can I still deduct any education expenses?

[LLL2010]

My son did not get 1098T because we have a tuition remission benefit that pays for his tuition. (1) Can I still deduct any education expenses such as the mandatory fees the school charges of the amount $700, and the textbook expenses we purchased for his courses, and the computer we bought for him?

If so, how to claim these education expenses? 

(2) Is the Modified AGI usually bigger than the AGI on form 1040? 

[Rainman12 · Accepted solution]

1) A. Assuming your son is a qualified undergraduate (first 4 years at accredited school) - Yes, you can claim expenses other than tuition for American Opportunity Credit (AOC). Expenses must be course related, and can include course fees, books, and 'materials', which may include (eg) a required laptop. General expenses, such as student activity fees are normally Not allowed for computing tax benefits.

1) B. To claim education benefits without a 1098-T is legal, but you can expect several months delay for processing. Consider mailing in your return with documentation of attendance and list of expenses. 

1) C.  For details on education tax benefits, see  https://www.irs.gov/publications/p970 

2) Yes, Modified AGI is normally higher than unadjusted AGI. MAGI is defined differently for different purposes; can be higher/lower.

[LLL2010]

Thank you so much for the detailed answer! This is my son's first year of college, these education expenses are new for us, and I just do not want to miss anything. Thank you so much! --Li