1098-T

[terrymorganjr]

My son is taking duel enrollment classes from a university.  I signed up for the classes through a third party contractor.  I received a 1098-T from the university for $450.00.  I paid about $900 for the classes.  I am assuming the difference went to the third party.  Can I deduct the fees that went to the third party? If so where do I add them in?  Also, these classes were completed in May of 2019.  All the books for the classes were purchased in 2018.  Can I still deduct the book expenses?

[DianeC958]

No, you cannot deduct the fees that went to the third party vendor since they were not amounts paid to the university.

No, you cannot deduct the book expenses paid in 2018.  You are a cash basis taxpayer and can only deduct expenses that were paid in 2019.

[terrymorganjr]

Thank you, Can I deduct the books purchased for college education in 2019 even though they do not apply to these particular classes?  They will apply to the 1098-T this year.

[DeanM15]

Yes, you can deduct the cost of books paid in a particular year as long as the academic period begins in the first three months of the next year.

For expenses to be creditable for the American Opportunity Credit, "the expenses paid during a taxable year must relate to: (1) an academic period that begins in the sa...."