College textbooks and income taxes?

[sherry7]

Quick question please...

We have an appointment with our CPA tonight to get our taxes done. DS started college last year, and of course, I bought textbooks. Are those deductible from my taxes? If not, I don't want to search the house looking for the receipts. On the same subject, do I need copies of his tuition bill? Thanks.

 

[bridget]

What Counts as Qualifying Tuition and Fees?
Tuition
Fees required as a condition for enrollment or attendance

Books, student health fees, and other school related costs are generally do not count as qualifying expenses for the tuition deduction. Schools report qualifying expenses to you and to the IRS using Form 1098-T.

 

[deerhart]

You should have gotten a statement from his school regarding tuition.

As for books, you can only count them off your taxes if your in one of the disaster zones. This year its the midwest so we got to write off all of DH's textbooks and the mileage he used for driving on one of his summer classes (each class was held at a different location)

 

[newsliner1]

I hope that is not true i just finished my taxes and wrote off text books and we do not live in a midwest disaster area

 

[deerhart]

they are only deductible if you MUST purchase them only from the school and are required for the class for the life long learning and the Hope credit. It also depends on the credit your taking. Tthe American Opportunity credit, then textbooks are deductible.

For example, if you have to pay a $35 lab fee, that is deductible as tuition, but the chemistry book that is used in your chem course that you could a) choose NOT to purchase, b) buy through the campus book store, or c) buy anywhere else, isn't deductible.

The IRS pdf your looking for is p970, its 99 pages long and within it has a recap of what is/isn't deductible.

 

[tar heel]

If your son's college did not send you the statement, it should be available online in your son's student account section. One of the three schools my sons have attended did not mail the forms. Your CPA will be able to determine whether you get a credit or deduction. The income limits have been raised a good bit this year, too.

You have not been able to claim books previously, but you can this year. I've not done our taxes yet, so I'm not sure how complicated it's going to be. You still get nothing for room, board, transportation, etc.

 

[MBKELmom]

Fees for the course itself is deductible but the OPs are correct in that textbooks are not. I got a nice amount of my grad school tuition back for one of the learning credits.

 

[tar heel]

Books ARE included in the new American Opportunity Credit, but it may not be the most beneficial way for you to go. This is NEW. Read about it here:

http://www.irs.gov/publications/p970/ch02.html#en_US_publink1000204341

 

[sherry7]

Thanks everyone. I've never heard of the American Opportunity Credit, but I'll ask the CPA tonight. I'd better go round up the book receipts in case I end up needing them.

 

[dhuba]

Yes, that American Opportunity credit is new for this year and next. You can get up to 2,500 tax credit PER student. This includes fees other than just tuition this year. Books definitely are included as part of this credit if they are required by the course.

 

[newsliner1]

thats good to know i was getting a little nervous there. taxes are way too complicated.

 

[sherry7]

Yay for tax credits!

I took in almost all of the book receipts from last year, along with DS's tuition statement that we received for taxes. (I bought most of his books on Amazon, so it was easy to print out the receipts. There was one he bought at the college bookstore, but I couldn't find that receipt.) Also, the CPA said that we could count the laptop we bought him as well.

Between all of that and the tax credit from buying a new vehicle, we finally managed to get a good return after several years of tiny ones.

 

[bridget]

How did you get to include the laptop? Was it bought from the school?

 

[sherry7]

How did you get to include the laptop? Was it bought from the school?

No, I bought it from an online retailer. I wasn't aware that it was included until the CPA asked me if we had bought him one for college. I didn't have the receipt with me of course, so I went online there at the office and printed out the receipt while he went over our stuff.