How do I identify which college expenses are qualified education expenses?

[dnolan135]

I am currently a full-time college student in a degree program and want to learn more about deducting education expenses. I read on the IRS website that course-related expenses required of all students, such as fees and books, are qualified expenses.

Would basic school supplies qualify such as writing utensils, notebooks, planners, or even calculator batteries? Would additional materials necessary for online-only courses such as printer paper and ink, a computer, and internet count?

Due to the pandemic, might materials required for in-person class attendance such as face masks be a qualified education expense? Might a flash drive required for in-person class activities also count?

[AmyC]

Supplies needed to fulfill school requirements are a deduction. For 2020, the IRS has added that internet is an available expense due to COVID and classes going online.

Many schools have printing areas and offer so many pages or some variant to students so that you don't actually need those expenses. Only if the school required it, would it be a deduction. With the changes from COVID, we may see some lawsuits for gray areas like you suggest. Did you really need a printer with COVID? You and the IRS may or may not agree. 

I like your list and think it all works but the face mask. You need to keep your list, receipts and I would make a note of why you needed those supplies.

The IRS has decided that face masks, hand sanitizer, etc all qualify as medical expenses. In your case, you might could argue it as an education expense. Some schools passed them out and had hand sanitizer at every door. How did your college handle things? Maybe you did need to buy something.

See:

• Form 8863
• Qualified Expenses 

You get an A for great questions!

[dnolan135]

Thank you for your response! It helped clear up a lot!

Do you know if the internet expense added due to COVID is also available for 2021? Also, are there restrictions on the internet deduction based on wifi device such as funding a portable hotspot over a traditional wifi router?

[AmyC]

The IRS has not issued guidance for 2021 expenses yet. I would not be surprised at the rate we are opening if they make it allowable but just don't know what the IRS will do in the future.

Since internet is brand new and just a COVID special, the IRS will probably have to look at a case by case basis until they figure out what the law means. The IRS is not out to penalize students simply ensure the deductions aren't abused.