AOTC 2021: Can I deduct laptop and Internet expenses for online courses?

[xaviermerino]

Hello,

I find myself not knowing what to do. Typically, I've read that the IRS does not consider computers as an educational expense but a personal one. However, with the pandemic, I took all my classes online for 2021. I'm not sure if the classes were also offered in person, but the school offers online courses and degrees year-round.

My school's website lists:

Eastern Florida Online offers 100% online college credit certificates and degrees and more than 200 online courses every term. Online courses are rigorous. If you decide to study online, you should be prepared to spend 5-12 hours a week per course. You will need access to a computer 4-5 times per week. EFSC's online courses are structured in 16-week and 12-week formats. Students submit course work and take tests/exams based on designated due dates; online courses are not self-paced courses

Later on, they list "Minimum System Requirements":

Before you enroll in an online course, make sure you have access to a computer and Internet connection that meet the following requirements:

- Canvas (online course management system) computer requirements

- Canvas - supported browsers

- Internet Connection: DSL or higher connectivity (512 kbps). Internet Service Provider. Note: AOL subscribers must use another browser.

Considering that this is in the school's website, would I be able to include a laptop that I purchased at the beginning of the year (2021) and my Internet bill as a qualified expense? I was a full time student for the year.

Note: In terms of Internet, I received the EBB benefit ($50 towards your Internet bill) for receiving a Pell Grant, so my bill was reduced for most of the year.

[Bsch4477]

Yes, your computer and internet expenses would qualify as a education expense since it is required by your school, assuming your school is a qualified education institution. 

[xaviermerino]

Thanks for you help. Someone was asking me this:

You mention purchasing the computer at the start of 2021. When did you enroll in the online degree program? Does the school have a campus location you could access as an enrolled student? What kind of degree program are you in, specifically is it one like architecture that would require significant processing power or did you buy a Mac where a cheap Chromebook would have sufficed?" 

This was my response: 

I purchased the computer at the start of 2021. I am currently a Junior. For 2021, I was a sophomore. As COVID happened, more and more courses transitioned online. The school closed on March 2020, moved all in-person classes to online and had employees work remotely. By Fall 2020, 85% of the classes remained online (the ones that were face to face were mostly in areas such as Health Sciences, Public Safety, ...). At the end of 2020, commencement was moved online. All school services were available starting Jan 4, 2021. By the end of the Spring 2021 semester, in-person commencement had resumed since the pandemic began.

My degree is on Information Technology / Cybersecurity. While I have taken classes where a Chromebook would have sufficed (e.g., sociology), most of my classes are lab based (requiring Virtual Machines, Databases, Penetration Testing, etc...) and can't be done over a Chromebook. The school library, which also opened Jan 4th 2021, loans equipment to students for up to a 3 hour period, for in-library use only. But they only come with MS Office and you cannot install any custom software on them. Because I was enrolled online, we are charged a "Lab Fee for Distance Learning" rather than the typical "Lab Fee" which gives you access to school computers (with the appropriate software and setup) during the class periods.

Would that change in any form or fashion the eligibility of the expense?

[Bsch4477]

No change.