We just received the 1098-T and the number that is listed in box 2 should be the amount billed for qualified tuition and fees. But it is lower than what was actually billed. It seems it only includes some of the fees. My understanding was that fees that are required for enrollment or for a specific course were qualified expenses.
There is no additional information on the form 1098-T as to which fees were included.
Playing around with the numbers, it seems that the security/transportation fee (the campus police and shuttle service are paid with this I assume) and the wellness fee (student health center) were not included, while the student activity fee, computer/network fee and lab fees were.
The students are required to pay these fees, I’m just confused why they don’t qualify.
Does anyone have a similar experience to where some of the fees you are required to pay are not considered “qualified expenses”?
Aren’t there items not on the 1098-T that count as qualified expenses for 529 purposes? For example, books are not part of the 1098-T but can be paid for from 529 funds. I would think any required fee not on a 1098-T falls into that category. I’m no expert, so don’t take my advice. I wonder what others will say.
Be careful- “Qualified Education Expenses” has different definitions depending on whether you’re talking about, for instance, 529 accounts or the American Opportunity Tax Credit.
The fees paid to the school, even if required, are not necessarily QEE. Mommdc, I think you have correctly identified the fees at your daughter’s school that are not QEE and therefore weren’t included in the ‘fees’ on the 1098T, the transportation and wellness center. Health insurance is also ‘required’ but not a QEE even if assessed through the tuition bill and if a grant is given to cover the insurance (many California schools give such grants), those funds are taxable.
‘Allowed by 529’ does not make it a QEE. Room and board can be paid by a 529, but are not QEE.
Books are an item that can be added to the QEE, but if books were paid for with 529 funds, they can’t be used to offset the taxable scholarships or to claim the AOTC. One tax benefit only!
Yes, @twoinanddone. I was just hoping since the fees are mandatory and every student attending this school has to pay them, that I could claim them for the AOTC.