Can I Deduct My Computer for School on Taxes?

 

The article below is accurate for your 2017 taxes, the one that you file this year by the April 2018 deadline, including a few retroactive changes due to the passing of tax reform. Some tax information below will change next year for your 2018 taxes, but won’t impact you this year. Learn more about tax reform here.

If you find yourself dreading tax season after a year of pounding out college reports on your computer, take heart—you may be able to get back the cost of that computer on your income taxes.

The IRS publishes specific requirements for educational expenses and a computer often qualifies. If it doesn't qualify under the credit, you still may be able to list it as an itemized deduction on your taxes.

Let's see how that's done.

Education tax credits

The government uses tax policy to encourage activities seen as being socially constructive, such as paying for education and saving for retirement. While the names and amounts vary, the IRS generally provides for some type of educational tax credit usable as an offset for qualifying tuition and related expenses.

A computer for school purposes may or may not qualify for these credits. Generally, if your computer is a necessary requirement for enrollment or attendance at an educational institution, the IRS deems it a qualifying expense. If you are using the computer simply out of convenience, it most likely does not qualify for a tax credit.

Itemized deductions

Itemized deductions are different from tax credits. While a tax credit will reduce your taxes on a dollar-for-dollar basis, a deduction reduces your taxable income instead. That means tax credits will lower your overall tax bill by a larger amount, but itemized deductions can still help.

If your computer does not qualify for any government educational tax credits, you may be able to use the expense as an itemized deduction instead.

Educator expenses

If you are an educator using your computer for school purposes, take an itemized deduction for this expense. The IRS allows you to deduct a certain amount of unreimbursed educational expenses that can include computer equipment and software.