what's included on 1098-T

Parent Cafe
1

My D goes to UVM. Last year the 1098-T only included 65% of the comprehensive fee on the 1098-T. I asked about it and the school said not all of the fee was a qualified expense. However, it is not negotiable, we have to pay it. In publication 970, qualified expenses are described as :“Tuition, required enrollment fees, and course materials that the student needs
for a course of study whether or not the materials are bought at the educational institution as a condition of enrollment
or attendance.”

So the entire comp fee has to be paid as a condition of enrollment but the school says only some of the fee is for qualified expenses.

I wonder if I can include the whole comp fee in qualified expenses.

Anyone have experience with this?

2

A “comprehensive fee” usually includes room and board. Room and board is not a qualified expense for the American Opportunity Tax Credit. So if you’re asking in reference to the AOTC, no, you cannot include the whole comprehensive fee in qualified expenses. If you’re asking in reference to 529 distributions, that’s a different story.

3

You’d have to know what the fee is for. Some schools require students to live on campus and buy a meal plan. Required, can’t get out of it. Can’t be included. Many schools now include health insurance in the fee. Can’t be included.

So what is this fee for?

4

For example, any transportation fees in the Comprehensive Fees are not qualified expenses.

See https://www.calstate.edu/SFO/Tax/TRA97db/PropReg.pdf quote PERSONAL EXPENSES. Qualified tuition and related expenses do not include the
costs of room and board, insurance, medical expenses, transportation, and similar
personal, living, or family expenses, regardless of whether the fee must be paid to the
eligible educational institution for the enrollment or attendance of the student at the
institution.
(4) TREATMENT OF COMPREHENSIVE FEES. If a student is required to pay a
comprehensive fee to an eligible educational institution that includes charges for tuition,
fees, and personal expenses described in paragraph (d)(3) of this section, the portion of
the comprehensive fee that is allocable to personal expenses is not a qualified tuition and
related expense. The allocation must be made by the institution using a reasonable
method.

[/quote]

5

So it seems you need to use the amount they listed, the 65% of the comprehensive fee paid.

6

Room and board expenses are not tuition. While they are required at this institution, they are not enrollment fees. They are not course materials. Therefore, they are not qualified expenses.