topic Can I purchase a laptop for online classes and claim tax credits with AOTC when my college is fully online due to Covid? in Deductions & credits

Can I purchase a laptop for online classes and claim tax credits with AOTC when my college is fully online due to Covid?

nanovon — Mon, 08 Mar 2021 21:47:37 GMT

With Covid, all colleges, including mine, change all their classes from in-class to fully online. I am planning on buying a new laptop for online classes. Can I claim my tax credit with AOTC in this situation? All classes are fully online now, how do I prove "it's needed as a condition of enrollment or attendance at the educational institution" as stated by the IRS. What proof do I need to submit when I am getting audited?

Re: Can I purchase a laptop for online classes and claim tax credits with AOTC when my college is...

DavidD66 — Mon, 08 Mar 2021 21:54:00 GMT

The school is not requiring you to buy a laptop. Granted, you have to have access to a computer and the internet, but purchasing a new laptop is not a condition of enrollment. If you had to buy the computer from the school, or buy a specific computer and prove to the school you had bought it, then that would be a condition of enrollment. A new laptop is not a qualified expense for the American Opportunity Credit (AOC) or the Lifetime Learning Credit.

Re: Can I purchase a laptop for online classes and claim tax credits with AOTC when my college is...

nanovon — Mon, 08 Mar 2021 23:54:35 GMT

Thanks for replying, I am more concerned about the "attendance at the educational institution" part, not so much about the "enrollment" part. Yes, the college never asks students to get a laptop for enrollment. But all my classes are fully online now, it's reasonable to have a working laptop for attending zoom classes. I am a senior, my old laptop is not working properly as it will shut down without a reason during my zoom classes. It affects my attendance at classes. That's why I wanted to get a new laptop for attending zoom classes without distractions. As stated by the IRS, "For AOTC only, expenses for books, supplies and equipment the student needs for a course of study are included in qualified education expenses even if it is not paid to the school." My question would be how do I prove it or what proof does it need when I am getting audited for this AOTC tax credits?

Re: Can I purchase a laptop for online classes and claim tax credits with AOTC when my college is...

ThomasM125 — Tue, 09 Mar 2021 00:53:25 GMT

You would need documentation supporting your need for the computer. That could be as simple as proving that you had to attend zoom meetings. So, e-mails mentioning online class schedules would prove that you had to have a computer. It would be helpful if you could somehow document your computer issues, such as screen shots of error messages.