Tax question for Plebe parents

<p>I believe the enrollment fees for the Naval Academy ($2,500) should be considered a qualified expense under tuition and fees for tax purposes. I'm trying to figure out how it work it into my QTP(529) distribution as well as tuition and fees deduction. I have not received a 1098T from the Academy though. Anyone else have a similar situation?</p>

<p>The Tuition Statement, IRS Form 1098-T would have been sent to the student, if they were even sent. The forms are furnished to the IRS under the student's social security number. </p>

<p>My son received Form 1098-T's from two community colleges that he attends in the evenings. The reverse side of the form details the fees and tuition.</p>

<p>You won't get the form 1098-T.</p>

<p>The fee you paid was not for tuition. It was for uniforms, and the computer, and other expenses (like haircuts, and midstore funny money). The tuition is paid by the US Government. The best you might be able to do is claim your plebe for this year (only) as a dependent, since you provided the support for the first half of the year. After this year, the mid files a return claiming him/herself, and you can't. Check with your tax advisor for the final word on this.</p>

<p>Candidatemom</p>

<p>I am aware the fee was not tuition. It seems it does fit the IRS publication 970 definition of required fee for enrollment which includes equipment, and supplies i.e. computers etc. Under this category, as tuition and FEES deduction, it could be used to lower MAGI. I am using TurboTax (therefore no tax advisor) which is not very clear on this topic. That's why I was hoping someone that was using a tax professional might have addressed this topic.</p>

<p>Thanks for the input.</p>

<p>Our tax consultant advised us that since we did not receive the appropriate form from from our son's institution, (USNA) we could not take the deduction, as the fee was not qualifying in the eyes of the institution.</p>

<p>Without the form, we could not deduct.</p>

<p>Good Luck,
CM</p>

<p>Candidatemom,</p>

<p>That makes sense and I know all forms were supposed to go out no later than the 31st of January but did you happen to check with USNA about the form? I think you're probably right that they may not see the fee as qualifying but I'll give a call tomorrow morning just to make sure. </p>

<p>Thanks for the good info.</p>

<p>TXC</p>

<p>Expenses that qualify are tuition and fees required for enrollment or attendance at any college, vocational school, or other post-secondary educational institution eligible to participate in the student aid programs administered by the Department of Education. </p>

<p>Qualified expenses do not include books, room and board, student activities, athletics (unless the course is part of the student's degree program), insurance, equipment, transportation, or other similar personal, living, or family expenses. The cost of books and equipment are generally not qualified expenses because eligible educational institutions usually do not require that fees for such books or equipment be paid to the institution as a condition of the student's enrollment or attendance at the institution. </p>

<p>KEY WORDS HERE ARE: "do not include", (a computer would be a piece of equipment), (personal , living or family expenses would be haircuts)</p>

<p>THE SECOND SET OF KEY WORDS:"are generally not qualified expenses and usually do not require", this opens it up alittle and I am not familiar with the USN enough to know if you pay for the computer to the school or the student buys it at home and brings it with him/her. I know the computer is required and USNA gives specs. I would say if you pay the school directly and the student would not be admitted without the purchase then you can take the computer expenses..haircuts, not sure you can get that one. IRS would most likely say the students could cut each others hair...</p>