year-end tax planning for parents of freshman

Paying for College
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<p>You can only use it as a qualified expense if you can retain documentation that it is “required.” If you have that, you are set. </p>

<p>Computer not required: [Computer</a> Requirement](<a href=“http://www.lawschool.cornell.edu/admissions/admitted/comp_req.cfm]Computer”>http://www.lawschool.cornell.edu/admissions/admitted/comp_req.cfm).</p>

<p>Computer required: [Computer</a> Requirement For Summer/Fall 2011 and Spring 2012 Entering Students | <a href=“http://www.eng.vt.edu%5B/url%5D”>www.eng.vt.edu](<a href=“http://www.eng.vt.edu/it/requirement]Computer”>Engineering Computer Requirement | Engineering | Virginia Tech)</a>.</p>

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<p>Thank you for clarifying the laptop questions.</p>

<p>It is possible to report total fall and winter bills and grants in year 2011 for the purpose of claiming AOC although 1098-T shows only that for fall semester?</p>

<p>Any comments on my above question regarding claiming AOC?</p>

<p>Thank you.</p>

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<p>I don’t understand how you get from</p>

<p>I do qualify for simplified needs test because our AGI is below $50,000 and one parent is a dislocated worker.</p>

<p>to</p>

<p>by then he won’t qualify for any aid at all.</p>

<p>Are you expecting significant increase in income?</p>

<p>It’s usually hard to predict those things.</p>

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<p>emeraldkity4,</p>

<p>You are mixing information. My AGI for current year is less than $50K. But DS is only a freshman. By the time he is a senior, I expect my AGI to be close to $90K, and he won’t qualify for any aid then. Hope it makes sense.</p>

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<p>Arutha, did you pay the spring tuition before the end of December?</p>

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<p>Her son is at UMich Ann Arbor- they have winter term.</p>

<p>He is blessed to get a total aid (including federal loans, work study and grants) of about $45K. He was an early admit. Our AGI was $23K and EFC $0</p>

<p>Remember you can’t claim room & board on 1098- just money you paid that wasn’t covered by scholarships or grants.</p>

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<p>Ok winter term. :slight_smile: I’m still a beginner at this as well, but it might matter if it was paid in December or in January.</p>

<p>Required textbooks do count, fwiw.</p>

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<p>Yes required textbooks count-but I agree that computers probably don’t.</p>

<p>At Ann Arbor the money is due Jan 4th, so you might as well pay it in Dec to make sure it is credited- at my D’s school they didn’t put her registration into the computer for the next qtr until it was paid ( as far as I could tell), even though it wasn’t technically due yet.</p>

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<p>

</p>

<p>Yes, I paid in Dec 2011. Does that make me eligible to include it in 2011 tax year for AOC (less grand and scholarships of course. And I am aware that room and board doesn’t come in picture).</p>

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<p>I sure hope so, since that is what I did for my S last year. ;)</p>

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<p>Thank you very much kelsmom.</p>

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<p>SUMMER ORIENTATION
MICHIGAN STUDENT ASSEMBLY
SCHOOL & COLLEGE GOV’T FEE
STUDENT LEGAL SERVICES </p>

<p>Do you think I can count any of the above as a qualified expense?</p>

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<p>Did the school include them on the 1098?</p>

<p>If those charges have to be paid by all students- I don’t see why not.</p>

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<p>It’s not on the 1098-T.</p>

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<p>if those are mandatory fees, I think so</p>

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<p>"Qualified expenses for all credits include tuition and expenses related to enrolling and attending post-secondary education. The expenses must be paid during the year for the academic period beginning during the tax year or in the first three months of the following year. </p>

<p>The following expenses do not qualify:</p>

<p>Room and board
Transportation
Insurance
Medical expenses
Student fees except if they are a condition of enrollment or attendance
Expenses paid with non-taxable funds or tax-free educational assistance
Same expenses used for any other tax deduction, credit or educational benefit."</p>

<p>Arutha… I plan on counting those types of fees. If they are a condition of enrollment (in my eyes meaning that ALL students must pay), then I think they should be eligible.</p>