For tax purposes, how does a summer abroad program work? Is transportation considered as a QEE? How about extra education abroad fees charged by the school?
Transportation is not a QEE. Extra education fees may or may not be. Ask the school if the extra fees will be included on the 1098-T, which would mean the school considers them to be qualified.
I had assumed my sons study abroad fees (or at least some of them) would have shown up on his 1098-T but did not. It was even taught by Professors in his major from his college. It counted as two electives, receiving full credit. I contacted the registrar and was told there was not a mistake. So I ended up listing it along with room and board, etc. I did get to list it and transportation on the CSS.
Depends on how your summer abroad works. D did summer study at Oxford through a company. We wrote check to that company but at the end of day tuition, etc was paid to Oxford. Generally overseas institutions are not considered eligible (since this is a US tax credit?). Look here to see a list of qualifying institutions:
https://www.irs.gov/Individuals/Eligible-Educational-Inst
Now it may be different as in above case where the tuition is paid to home college. Older D did spring term in Paris with her school and it was their course and their professors so we counted it as tuition to D’s college since that’s who was issuing credit.
I see OP’s question was more about transportation and extra fees. In older D’s case they were not listed on 1098.
Usually fees are only qualified if they are required as condition of enrollment or attendance.
The wellness and transportation fee that all students have to pay at my D’s school, while mandatory, was still not a qualified expense for AOTC, and not listed on 1098 T.
So I would expect that fees for study abroad programs that are not mandatory, but optional, might be treated that way as well.
Thanks everyone! Looks like I’m going to get very familiar with that 1098-T form next year!
Yes, you should also become familiar with Publication 970.