IRS 1098-T Box 1 and American Opportunity Credit

agarb

Member
Joined
Apr 29, 2020
Messages
10
Short version of my question:

I’m trying to do some planning with respect to upcoming out-of-pocket expenses for my incoming DS and next year’s income taxes. I am especially interested in expenses eligible for the American Opportunity Credit.

I am assuming USMMA issues form 1098-T to each student. Does anybody feel comfortable sharing (in forum or via PM) the amount listed in box 1 “Payments received for qualified tuition and related expenses”? If you care to share, it would also be helpful to know the class year of the receiving midshipman.

----

Long version of my question:

IRS Publication 970 outlines the American Opportunity credit. This generally covers tuition and “certain related expenses required for enrollment or attendance.”

Publication 970 continues to define related expenses.

  • Student activity fees are included only if payable directly to the institution as a condition of enrollment.
  • Books, supplies, and equipment needed for course of study are included whether or not purchased from the institution.
Publication 970 also lists some expenses that don’t qualify, such as insurance, medical, room/board, transportation, or personal expenses.

Based on numbers found in the 2023 Logging In, it appears that our out-of-pocket expense through this calendar year will be approximately $4400. (Excluding travel and miscellaneous expenses.)

  • Midshipman Fees ($1050)
  • Educational Kit ($161 Deck or $116 Engine)
  • Computer Package ($2190)
  • Optional Accessory Package ($410)
  • Plebe Kit – Personal Items ($628)
I have my opinion on which of the above out-of-pocket expenses are qualified for the tax credit and which ones are not. Assuming USMMA issues 1098-T, it would be helpful to know approximately what amounts they actually include in box one as being a “qualified” educational expense.





 

A1Janitor

Member
Joined
Dec 22, 2018
Messages
1,560
Expenses that are included in box one aren’t necessarily the only qualified expenses. Colleges generally include tuition and fees. Books usually are not included.
 

Capt MJ

Ancient Mariner
10-Year Member
Joined
Sep 27, 2008
Messages
7,734
Try google. This has come up before here on SAF.


 

Capt MJ

Ancient Mariner
10-Year Member
Joined
Sep 27, 2008
Messages
7,734
Last edited:
Top