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Itemized Deductions Schedule-A


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Old 02-03-2012, 07:02 PM
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College Tuition

My daughter is a full time college student. The last 2 years we received a 1098T from the college. This year we have not received it, so my daughter asked financial aid about it. Their response was:

For the 2011 tax year a 1098 T was not produced for you because the Grants/Scholarships were more than the charges on your account. When Grants/Scholarships exceed charges per Federal guidelines were are not required to produce a 1098 T.

We still paid tuition and she worked as a Residence Assistance in exchange for room and board. Does this mean we can't deduct her tuition?



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Old 02-04-2012, 12:12 AM
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“When Grants/Scholarships exceed charges per Federal guidelines were are not required to produce a 1098 T.”---->Correct;the student doesn’t receive a 1098T when the student whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships or grants.
“We still paid tuition and she worked as a Residence Assistance in exchange for room and board. Does this mean we can't deduct her tuition?”----->No. Although room and board is a standard expense for many college students, it is usually not deductible, because it is optional for most. You cannot include room and board as a qualified educational expense for the tuition deduction or a tax credit, such as the American Opportunity/HOPE credit, I guess. Qualified educational expenses are those required by the university and only used to help work toward a degree; a room could be used for personal reasons. Room and board qualify as legitimate expenses for the student loan interest tax deduction or 529 Plan/Coverdell plan.



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Old 02-04-2012, 09:47 AM
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ok, I understand room and board is not deductible. Her tuition was much more than the grant she received. So if I didn't receive a 1098 T can still deduct what we paid over the grant, which was about $5000 for the year. Can I deduct her books for her classes? The ones required by the Professors?



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Old 02-04-2012, 12:55 PM
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“So if I didn't receive a 1098 T can still deduct what we paid over the grant, which was about $5000 for the year. Can I deduct her books for her classes? The ones required by the Professors?”---->Since(If) your daughter received tax-free tuition assistance, such as Scholarships/Grants, you must deduct this from the amount of tuition you paid. You can deduct other qualified expenses, such as course-related books and fees and other educational expenses, such as the cost of research and typing too.



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