Education Expense

[ldreyna]

A tp is taking an online course that is offered by a university. He is taking this course to better himself for advancement in his work. He pays in a payment plan offered by the school ($1000.00) in 2009. The total to pay is for tuition and the cost of books. Is he able to take the Opportunity Credit for this? I'm just not sure about online courses. Or maybe, he can use the tuition deduction instead? Any comments?

Thanks, Larry

[kcjenkins]

Yes, online courses may count, IF the provider of the courses is a qualified school. Qualified education expenses are tuition and certain related expenses paid to an eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. Usually you get that info from the school itself.

[ldreyna]

Thanks!

[kcjenkins]

You're welcome. USDE might have a list on their website, I have not checked. But usually just a call to the school can get the info.

[Pacun]

I am not sure if $1,000 is actual amount paid or the amount paid in 2009 towards the loan. When you get a loan, you can deduct the full amount of the loan for classes in the year in question and the next 5 months of the following year.

I believe I am correct.

[jainen]

>>An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education.<<

Even if it seems to be a big name school, the extension courses and similar arrangements may not be a part of the actual accredited institution.

[Don in Upstate NY]

A tp is taking an online course that is offered by a university. He is taking this course to better himself for advancement in his work. ... Is he able to take the Opportunity Credit for this?

The Opportunity credit requires that he is a degree candidate, and is at least a half-time student. Taking a single course may not meet these criteria. Consider the Lifetime Learning credit.