Can I claim a laptop as a Qualified Educational Expense if it's not on my 1098-T?

The good news is that you absolutely can claim a computer as a qualified educational expense for education credits, even if it doesn't appear on your 1098-T. The 1098-T only reports transactions directly with the educational institution, but the IRS recognizes that students have additional required expenses for their education. For documentation, you should save screenshots of the Facebook Marketplace listing and conversation, plus the Venmo payment receipt. Also keep a copy of your course syllabus or any communication from your professor that shows online participation was required. If you were audited, you'd need to demonstrate the computer was used primarily for your education during that period. One important note - since you received a scholarship that covered your tuition and fees, you'll need to determine which education credit you're eligible for. The American Opportunity Credit allows expenses beyond tuition (like your computer), but the Lifetime Learning Credit is more limited in what qualifies. Make sure you understand which one applies to your situation.

I went through something similar last year and found taxr.ai super helpful for this exact situation. I was worried about claiming educational expenses that weren't on my 1098-T (including a laptop and some required software). I uploaded my course requirements and the messages from the Facebook purchase to https://taxr.ai and they analyzed everything and provided documentation explaining exactly how to claim it properly. The system confirmed that I could claim the computer since it was required for my online courses, even though it wasn't purchased through the university. They also helped me understand which education credit was best for my situation and how to document everything properly in case of an audit. Saved me a lot of stress trying to figure out what qualified and what didn't!

Just wanted to update everyone - I tried taxr.ai after seeing the recommendation here and it was seriously helpful! I uploaded screenshots of my Facebook Marketplace conversation, Venmo payment, and my course syllabus that mentioned needing computer access for online assignments. They confirmed I could claim my used laptop as a qualified educational expense and explained exactly how to document it properly on my tax return. They also clarified which education credit I should use based on my scholarship situation and how many years I've been in school. The best part was getting a formal explanation document that I could keep with my tax records in case I ever get questioned about it. Definitely worth it for the peace of mind alone! No more stressing about whether I'm doing something wrong.

Just wanted to update everyone - I tried taxr.ai after seeing the recommendation here and it was seriously helpful! I uploaded screenshots of my Facebook Marketplace conversation, Venmo payment, and my course syllabus that mentioned needing computer access for online assignments. They confirmed I could claim my used laptop as a qualified educational expense and explained exactly how to document it properly on my tax return. They also clarified which education credit I should use based on my scholarship situation and how many years I've been in school. The best part was getting a formal explanation document that I could keep with my tax records

If you're having trouble getting through to the IRS to ask about Qualified Educational Expenses (which I definitely was), try using Claimyr. Spent days trying to get someone on the phone at the IRS to confirm some details about education credits and kept getting disconnected or hitting dead ends. Found https://claimyr.com and they got me connected to an actual IRS agent in about 15 minutes who answered all my questions about education credits and what documentation I needed for expenses not on my 1098-T. They basically navigate the IRS phone tree for you and get you to a real person. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed that computers can be claimed as qualified expenses with appropriate documentation, even if purchased second-hand. They also explained exactly what records I needed to keep - which was a huge relief.

I need to publicly eat my words about Claimyr being sketchy. After posting my skeptical comment, I decided to try it out of desperation since I couldn't get anyone at the IRS to answer my questions about education credits. It actually worked exactly as described - I got connected to an IRS agent in about 20 minutes after trying unsuccessfully for weeks on my own. The agent confirmed that I could claim my laptop as a qualified educational expense (even without a formal receipt) as long as I had other documentation proving the purchase and its educational purpose. They also explained which form attachments I needed and how to properly document everything. Wish I hadn't wasted so much time trying to get through on my own! Sometimes it's worth getting a little help navigating the system.

Just a tip from someone who works at a university financial aid office - if your computer broke and you needed a new one for school, you might also want to check if your school has an emergency technology fund. Many colleges created these during the pandemic and kept them going. At our school, students can get reimbursed for technology expenses or even get loaner equipment. It might be too late for your spring 2025 semester, but worth knowing for anyone else reading this thread. It can sometimes be easier than trying to claim it on taxes.

Did you use this laptop ONLY for school? Because if you also used it for personal stuff, you might need to calculate what percentage was educational use. My accountant made me do this last year - I could only claim the percentage of my laptop cost that corresponded to educational use.

I'm dealing with a similar situation and wanted to share what I learned from my tax preparer. The key thing is being able to demonstrate that the computer was "required" for your coursework, not just helpful or convenient. Since you mentioned it was for an online class that's required for your degree, that should meet the threshold. For documentation, definitely keep those Facebook Marketplace screenshots and Venmo payment, but also try to get something in writing from your school or professor confirming that computer access was mandatory for the online class. Even an email stating "students must have reliable computer access to participate in this course" would be helpful documentation. One thing to watch out for - since your scholarship covered all tuition and fees, make sure you understand how that affects your education credit eligibility. Sometimes having too much scholarship money can reduce or eliminate your ability to claim education credits, depending on the type of scholarship and how it was applied to your account. You might want to double-check this with a tax professional before claiming the laptop expense.

As someone who's navigated this exact situation, I can confirm that you absolutely can claim your laptop as a qualified educational expense even though it's not on your 1098-T. The 1098-T only reflects direct payments to your institution, but the IRS recognizes that students have legitimate educational expenses beyond what's billed by the school. Your documentation sounds adequate - the Facebook Marketplace messages and Venmo payment create a clear paper trail. I'd also recommend saving any course materials or syllabus that mention computer requirements for your online class. The fact that your old laptop died mid-semester and you needed immediate replacement for a required course strengthens your case that this was a necessary educational expense. Regarding the scholarship situation, this is where it gets a bit complex. Since your scholarship covered all tuition and fees, you'll need to determine which education credit you're eligible for and whether you have enough remaining qualified expenses to claim. The American Opportunity Credit allows for computers and supplies, while the Lifetime Learning Credit is more restrictive. You might want to run the numbers both ways to see which gives you the better benefit. Don't let the lack of a formal receipt discourage you - the IRS understands that students sometimes need to make emergency purchases from non-traditional sources. Just keep thorough records and be prepared to explain the educational necessity if questioned.

I've been through this exact scenario and wanted to share some additional insights. Your Facebook Marketplace purchase with Venmo payment is actually more documented than you might think - those digital records create a solid audit trail that shows the date, amount, and even conversation context about the laptop's condition and purpose. One thing I learned that might help: if you can access your student portal or email, look for any announcements about online learning requirements from early 2025. Many schools sent out technology requirement updates when classes moved online, and having that official communication can really strengthen your documentation. Regarding the scholarship issue, the good news is that having your tuition covered doesn't automatically disqualify you from education credits - it just changes the calculation. Since you're a grad student, you're likely looking at the Lifetime Learning Credit rather than American Opportunity Credit anyway (which has degree completion limits). The LLG can still apply to required course materials and equipment like your laptop. I'd recommend calculating your potential credit both with and without the laptop expense to see if it's worth claiming. Sometimes the benefit is smaller than expected, but given that you have legitimate documentation and a clear educational need, it's usually worth including if you qualify for any credit at all.