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Robjkrespo
Returning Member

Laptop deduction!

I have question that I've been trying to have answered. I'm in school and we need a laptop. I know I can deduct it but my question is can I deduct the whole amount even if my laptop is on a payment plan . Also can I include the interest for the life of the plan ? 

If I can't deduct the entire purchase price in a year only the payments ? Can I include the interest as well ? 

Thank you so much ! 
Robert 

4 Replies
Bsch4477
Level 15

Laptop deduction!

You can’t deduct your laptop but it’s an educational expense for the purpose of the American Opportunity education credit. If you are claimed as a dependent your parent claims that credit if otherwise eligible. 

Robjkrespo
Returning Member

Laptop deduction!

Thank you so much ! I claim myself if I did use AOE can I deduct the entire purchase price plus interest ( life of the plan)  even though its on a payment plan or only what I pay for the laptop in a year? 

 

Thank you so much !

Robert 

Bsch4477
Level 15

Laptop deduction!

If you are not claimed by anyone else use the amount you actually spent in the tax year you are filing. 

Hal_Al
Level 15

Laptop deduction!

Q.  If I did use AOE can I claim the entire purchase price?

A.  Yes.  You are considered as having paid for the course material (the required computer) with borrowed money.

 

Q. Can I claim the interest paid.

A. No.

 

A separate issue:

A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants.   It is usually best if the parent claims that credit. 

 

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