topic Computer for College – how much, how paid, when paid... in Education

Computer for College – how much, how paid, when paid...

mosswald — Thu, 11 Mar 2021 16:52:45 GMT

OK, I assume a lot of people have this same issue - questions regarding how exactly to claim a computer for college education, how much, and when...

Assume that the computer I bought for school now meets the test as being required for school, since everything is online.

Part A:

What if the computer was purchased in 2019, but now I deemed it "required" for 2020 – can I claim it in 2020?

What if it was paid for in installments, and I still owe some in 2021 (pay off in 2021, or later?) Still 2020?

What amount? Can I just deduct the full cost of the original 2019 invoice on the 2020 taxes? And keep my receipt on file? Or do I have to compute some other cost?

Part B:

What if I bought a computer in 2018, and in thinking back I deemed it required in 2019 for other reasons (actually took online classes in 2019), can I amend my 2019 Return?

Can I split the cost over two years for ONE computer?

Thanks in advance...

Re: Computer for College – how much, how paid, when paid...

Hal_Al — Thu, 11 Mar 2021 18:13:02 GMT

Q. What if the computer was purchased in 2019, but now I deemed it "required" for 2020 – can I claim it in 2020?

A. No. You may only claim what you actually paid in 2020.

Q. What if it was paid for in installments, and I still owe some in 2021 (pay off in 2021, or later?) Still 2020?

A. You may claim the actual payments made in 2020. But, only if it was a specific loan for the computer. Putting it on your credit card, for example, would not count as installments.

Q. What amount?

A. The amount of the payments, made in 2020.

Q. What if I bought a computer in 2018, and in thinking back I deemed it required in 2019 for other reasons (actually took online classes in 2019), can I amend my 2019 Return?

A, You can amend for 2019, but you may only claim what you actually paid in 2019. If you charged it to a credit card, then you can claim the whole amount.

Q. Can I split the cost over two years for ONE computer?

A. No. Again, you can only claim what you actually paid in each year.

The threshold for getting the maximum American Opportunity Credit is pretty low ($4000 in qualified expenses). It's rare for a computer cost to make any difference.

Re: Computer for College – how much, how paid, when paid...

mosswald — Thu, 11 Mar 2021 20:46:45 GMT

Thanks! That's helpful information!