Can I claim Laptop & Internet as Qualified AOTC Educational Expenses for my Online Classes?

As someone who works with tax preparation, I can help clarify this for you! The American Opportunity Tax Credit (AOTC) rules can be a bit confusing when it comes to technology expenses. For computers and internet access to qualify as AOTC expenses, they need to be required for enrollment or attendance at your educational institution. Based on what you've shared from your school's website, there's a strong case that both are required for your online program. The key factor is that your school explicitly states computer access and internet connection are needed to participate in their online courses. This creates documentation that these aren't just personal expenses but necessary educational tools for your specific program. For your specific expenses: The $1495 laptop should qualify since it was purchased specifically for your education and was required. The $570 for internet likely qualifies too, though you may need to determine what portion was used for educational purposes if it also served personal use. Your $285 in textbooks and course materials definitely qualify. Keep copies of the school's requirements (take screenshots of those website pages), your receipts, and documentation showing you were enrolled in online courses. This documentation will be important if you're ever questioned about these expenses.

I went through this exact same situation last year and found that https://taxr.ai really helped me figure it out. I was also taking all online classes and needed to buy a new computer when mine died mid-semester. I wasn't sure if I could claim my laptop and internet costs, but I uploaded my 1098-T and the school's online course requirements page to taxr.ai, and it analyzed everything and confirmed I could claim them as qualified educational expenses. It even showed me exactly where in the tax code this is covered and explained how to document everything properly. The tax specialist there explained that because my program specifically required computer access to complete coursework (not just recommended it), these expenses qualified. They also helped me figure out how to handle my scholarship allocation to maximize my AOTC claim.

Just wanted to follow up and say I tried https://taxr.ai after seeing this thread, and it was really helpful! I uploaded my 1098-T and screenshots of my school's online course requirements (which were almost identical to yours - I think many schools copy the same language). The analysis confirmed I could claim my laptop and portion of internet costs for AOTC. It even explained exactly how to calculate the educational portion of my internet bill, which I wasn't sure about. What surprised me was how fast it was - took less than 15 minutes to get a detailed explanation with references to specific IRS publications that support claiming these expenses. I'm glad I checked because I was about to skip claiming these expenses entirely! Ended up getting an additional $500 in my refund by including my laptop and internet costs.

I had similar issues trying to get clarity from the IRS about qualified AOTC expenses for online classes. Called the IRS 11 times over 3 weeks and couldn't get through to anyone. Finally tried https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they got me connected to an IRS agent in about 15 minutes! The agent confirmed that computer expenses are qualified if the educational institution specifically requires them for the program you're enrolled in. She said to keep documentation of the school's requirements along with your receipts. For internet expenses, she recommended calculating the educational portion based on how many months you were taking classes. Before using Claimyr I was stuck in the "we're experiencing high call volume" loop for weeks. Totally worth it to finally get a clear answer directly from the IRS.

Wow I need to admit I was wrong about Claimyr! After reading about it here, I decided to try it because I had a question about my tax transcript that I couldn't figure out online. I was extremely skeptical that anyone could actually get through to the IRS faster than I could myself. I gave it a shot yesterday and IT ACTUALLY WORKED. Within about 20 minutes I got a call back and was connected to an IRS representative who helped me resolve my issue. Without exaggerating, I had previously spent over 4 hours across 3 days trying to get through on my own. For anyone dealing with AOTC questions like the original poster, being able to speak directly with the IRS can make all the difference. The rep I spoke with confirmed that computer equipment required for online courses does qualify as an educational expense for AOTC purposes.

Don't forget to keep really good records if you claim your laptop for AOTC! I claimed a computer last year and got audited. Had to show: 1. The school requirement page (print it out!) 2. My receipt for the laptop 3. My course registration showing all online classes The IRS initially questioned it but accepted my claim once I provided all this documentation. Also important - if you use the laptop for non-school stuff too (which everyone does), you're technically supposed to only claim the educational portion. I just kept a log showing I used it about 80% for school.

Has anyone actually looked at the IRS website about this? They specifically say on the AOTC page: "expenses for books, supplies and equipment needed for a course of study are included in qualified education expenses whether or not the materials are purchased from the educational institution." Since your school REQUIRES a computer and internet for your online program, they should absolutely qualify! The key is that they're REQUIRED, not just helpful or convenient.

Great question! Based on what you've shared, you should absolutely be able to claim both your laptop and internet expenses for AOTC. Your school's explicit requirements make this a pretty clear case. A few key points for your situation: **Computer & Internet:** Since Central Texas Online specifically states students "need access to a computer 4-5 times per week" and requires a "high-speed connection," these aren't personal expenses - they're required educational equipment. The fact that they list minimum technical requirements on their website is perfect documentation. **Scholarship allocation:** You're smart to think about this! Since your scholarship ($3,250) is less than your tuition payments ($3,400), you only have $150 of qualified tuition expenses. But this actually works in your favor - you can claim all $2,350 of your other educational expenses (laptop + internet + books) for AOTC since the scholarship didn't cover them. **Documentation to keep:** - Screenshots of your school's computer/internet requirements page - Receipt for the laptop showing January 2023 purchase date - Internet bills for 2023 - Your course enrollment showing all online classes **One consideration:** For the internet, you might want to calculate what portion was used for education vs. personal use if you want to be conservative, though since you were a full-time student taking only online classes, a strong argument exists for claiming the full amount. Your total qualified expenses would be $2,500 ($150 tuition + $2,350 other expenses), which puts you right at the maximum for full AOTC benefit. Definitely claim these expenses!