Money $$$$$

American Opportunity Credit

The American Opportunity Credit is for tuition (1098-T), which we will not receive from USMMA, and "qualified expenses". Room and Board are specifically EXCLUDED.

"Qualified expenses" are defined by the IRS as "expenses that are required for enrollment at an accredited post secondary institution".

The DOT/MARAD/ invoice I received does not itemize anything. Just has a total amount due on 6/26/2010, 11/10/2010 and 3/16/2011.

I believe the fees are for a "required computer", "required haircuts", and "required laundry and tailoring", among other required fees that must be paid to enroll?

Sounds like all the fees are valid American Opportunity Tax Credits to me?

Unfortunately, most tax professionals do not know anything about required fees at the service academies........You can't choose to let your hair grow or become slovenly clothed, like you can at state college.
 
Why would you think we can not take the American Opportunity Credit?

The required expenses for enrollment at the USMMA clearly meet the IRS definition of "qualified expenses for enrollment". We were sent a bill for expenses that were not tuition, room or board expenses.

The IRS bulletin I read specifically included a lap top computer expense , if required by the college. All the other non-itemized expenses on the invoice are obviously "required" for enrollment.

I am just curious as to why USMMA, nor anyone else on this blog will state an opinion one way or the other?
 
I was only stating the advice of my tax professional who didn't think the "fees" we paid were a qualifiying expense.

All folks need to get their hair cut and clothes laundried.

I did take the tax credit for a year when I prepared my own taxes, then based on his advice, we don't take it anymore.

The credit isn't going to break my bank on way or the other, so we chose to take the safer route and avoid any issue.

This is just my opinion, please do as you see fit for your family's situation.
 
According to the Coast Guard legal staff: "As a cadet at a federal service academy, you are not allowed to receive the Education Credit because we are not an "eligible educational institution." An eligible educational institution is any college, university, vocational school, or other post-secondary educational institution eligible to participate in a student aid program administered by the U.S Department of Education. The Coast Guard Academy is not eligible to participate in a student aid program because we do not charge tuition."
 
ahhh but the students at USMMA are charged a fee, and, those fees can be funded through student aid..........so.......perhaps we can take the tax credit. At USNA the mids are paid a salary each month from which their fees are taken...our mids are charged a fee and not paid any salary while at school :)
 
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