Qualified Education Expenses

[nikosgreb]

I am enrolled in a 100% online bachelor's degree and wanted to know if the purchase of an Ipad, desk, and chair would be considered a qualified education expense under the American opportunity credit or the lifetime learning credit.

The course syllabus says"This is a fully online course; therefore, it requires a computer with internet access". The Ipad would be my main computer for future classes and the desk and chair are used to complete my work.

[leeloo]

The desk and chair are definitely not qualified education expenses.

For the LLC, these expenses must be paid to the school. 

Related expenses.

 Student activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment or attendance. Pub 970

However, for the AOC,  expenses for books, supplies, and equipment needed for a course of study are included in qualified education expenses whether or not the materials are purchased from the educational institution. Pub 970

In either case, the school must be a qualified educational institution.

[Hal_Al]

Q. Would  the purchase of a desk and chair be considered a qualified education expense under the American opportunity credit or the lifetime learning credit?

A. No. They would not meet the definition of "Required course materials".

Q.  Would  the purchase of an Ipad be considered a qualified education expense under the American opportunity credit?

A. Simple answer: Yes.  See explanation at https://ttlc.intuit.com/community/college-education/discussion/is-a-computer-a-qualified-expense-for...

In addition to the computer being "required", the courses must be taken at an "eligible institution".

 The school should be able to tell you if it is an eligible educational institution. In general, an eligible educational institution is an accredited college, university, vocational school, or other postsecondary educational institution, including accredited, public, nonprofit, and proprietary (privately-owned, profit-making) postsecondary institutions. Additionally, in order to be an eligible educational institution, the school must be eligible to participate in a student aid program administered by the Department of Education. If they issue a 1098-T they are probably an eligible institution.

Schools that  offer only online courses usually do not qualify.  Online classes taken at schools that also have  classroom instruction usually do count.

Enter your school at the link below, to see if it's on the dept. of education list.

https://ope.ed.gov/dapip/#/home