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

You're on the right track! While a computer can indeed qualify as an educational expense if it's needed for your coursework, the documentation part gets tricky with private sales. The IRS doesn't specifically require receipts from stores - what they need is documentation that proves you made the purchase and that it was necessary for your education. For your situation, I'd recommend creating a paper trail with: a bank statement showing the cash withdrawal, a written statement from the seller if possible (even a text/email confirmation), and most importantly, something from your school/professor showing that a computer was required for your online courses. The mismatch with your 1098-T isn't necessarily a problem. The form reports what the school received/refunded, but you can claim additional qualified expenses beyond what appears there. Just be prepared to substantiate these claims if asked. Keep in mind that how much benefit you'll get depends on which education tax benefit you're claiming (American Opportunity Credit, Lifetime Learning Credit, or tuition and fees deduction) and your overall tax situation.

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I'm an academic advisor at a university and students ask me about this all the time. Here's what I tell them: keep EVERYTHING related to your educational expenses, especially for technology purchases. The IRS guidance says computers qualify when they're needed for coursework. For private purchases without receipts: 1) Document the withdrawal/payment, 2) Get something in writing from the seller if possible, 3) Save your course syllabus or program requirements showing technology needs, 4) Take screenshots of any online class portals showing required software. Also, this is important: make sure you're claiming the right education benefit. The Lifetime Learning Credit has different rules than the American Opportunity Credit. The AOTC is generally more valuable but has stricter eligibility requirements.

Has anyone used TurboTax for claiming education expenses that aren't on the 1098-T? Will it flag this as an issue or let me enter additional qualified expenses?

This is a really common situation that many graduate students face! You're absolutely right that computers can qualify as educational expenses when required for coursework, and the fact that your 1098-T shows $0 doesn't prevent you from claiming legitimate additional expenses. For your $850 laptop purchase, here's what I'd recommend for documentation: keep that bank withdrawal record, any text/email communications with the seller, and definitely get something from your school showing computer requirements for your online courses. A syllabus mentioning required software or a program tech requirements page would be perfect. The key is being able to demonstrate that the computer was necessary for your education. Since you were taking online courses requiring video conferencing and specialized software, that's a pretty clear educational need. The IRS understands that not all educational expenses flow through the school's billing system. One thing to keep in mind - make sure you're eligible for the Lifetime Learning Credit based on your income limits and other factors. And if you end up getting audited (unlikely but possible), having that documentation ready will make the process much smoother. You're being smart to do this correctly rather than just skipping a legitimate deduction!