The 1098T will list the amount the school charged for tuition, allowable fees and charges. It will also list the amount you paid to the school (the $2500 you charged on the credit card is considered cash paid to the school). You may have other QEE you can keep track of and add to the QEE, like books, MAYBE a laptop and other costs, some supplies if they are required for a class like art supplies or lab supplies, but things like pens and notebooks and general office supplies are not included in QEE.
If you are eligible for the AOTC, there is a maximum of $4000 credit, and of that only $1000 is ārefundableā (youāll get it even if you donāt have tax liability) but the other $3000 only offsets other taxes owed. There is also a Lifetime learning credit but that has different amounts that you can claim. Read IRS booklet 970 for education credits.
All you can do now is keep all your receipts. I donāt think youāll āget it all back.ā You might qualify for some of it as a tax credit.
Iām sorry, but I donāt believe paying for college expenses with a credit card is a better way to pay tuition costs. The interest is high, and if you donāt pay more than the minimum balance each month, it will just build and build. Itās highly likely you could end up paying more than double what you charged by the time you pay this off.
All of my kidsā colleges charge a fee if a credit card is used for payment. My son used my credit card to sign up for a 3 credit course at a local college and I was charged $35 (and told him to use my checking account from now on).
The American Opportunity Tax Credit is a maximum of $2,500, not $4,000. There has to be $4,000 in QEE spending to get the full $2,500 credit. The credit is dollar-for-dollar for the first $2,000 spent on QEE, and then a 25% credit for the next $2,000 spent on QEE.
Edited to add: and I agree that using a credit card to pay college costs is usually a terrible way to pay.
Iāve been using my credit card to buy the newer iPhones and paying them off, unlike other people who get stuck into a 2 year contract. I always buy it unlocked, courses are the same, paying it off every month by $1,000 or $500 will deplete the bill easily
Whether or not you will be able to āclaim all the money backā depends in large part on whether or not you will have a tax liability after your deduction is applied, and this depends in part on how much earned and unearned income you will have for the tax year. If your income does not exceed the deduction you are entitled to, you will have no tax liability and you will only get the refundable part of the education tax credit, if in fact you are entitled to the refundable part of the credit. So, thereās a chance that you will get no education tax credit.
Congratulations and good for you. Your credit card issuer still likes you because you have a good payment history and you pay them interest. Having a good credit score is important. The next level you should strive for is keeping a top credit score and paying your credit card bill in full each month. Your credit card issuer will not like you so much when this happens, but you will be saving money for your own use that you had previously been handing over to the credit card issuer. You will be borrowing money for short terms at zero cost to you, but there will be a cost to the credit card issuer. You will be taking advantage of them, instead of the other way around as is the current situation.
But you do mind paying extra fees to your mobile phone carrier, donāt you? Whatās the difference between excessive fees to the mobile carrier and excessive interest to the bank? They are all profits coming out of your pocket. You probably should take a course in basic personal finance before you go to college.
I donāt switch carriers, so sometimes I buy the phones outright, sometimes I do the monthly payment (thereās no interest). So far my iPhone 8 is plugging along, my husband and son have 5ās. One of my kids is on her 3rd 13 this year, sheās paying for it (so hard on phones).
I never switched carriers been with T Mobile for a long time, I just buy the phones network and factory unlocked and use it for T Mobile GSM is the best.
I passed 10 levels of math at my community college and now at a Uni pursuing a BSN
Iāve made it all the way to differential equations one of the toughest math class 8 students failed out of 15 and 7 passed including me.
For some strange reason I didnāt get charged interest all this time Iāve been using my credit card but I do get cash back a bit on it too. Cause I opened this card a few months ago.
They have told me I will get an 1098-T at the end of the year in mid January maybe.