Lifetime learning credit no 1098T

[Bonnie]

Have customer that I have done return for 4 years prior to 2012 and they (both husband and wife) attend a college out of Liverpool England and do their studies on line. When I first prepared their return, I questioned whether this school was accredited in US and qualified for the education credit. The customer researched it themselves and the school does have an office in Baltimore. I was told by customer that they found out the school did qualify for education credit so have always taken the lifetime learning credit for them. Of course this year we need the 1098T with EIN and info on it which they do not have. I told them we would need this and they contacted the school and were sent all kinds of info about how much they paid but no 1098T and they were told the school does not issue a 1098T since they are not in the US. Does anyone see anyway they can take this credit? Thoughts please on whether they actually do qualify for the credit? I'm looking back now wondering if I should have taken it in the past even.

[Edward]

I believe that on-line courses do not qualify for any education credits.

[FEDUKE404]

I vote no or at least unlikely

I also have some doubt as to whether online education courses (especially of a foreign origin) can qualify for any tax credits.

Another issue, per Pub 970, that is a determining factor is the following requirement:

"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. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions."

Might be a very high mountain to climb for the couple living in Liverpool, England.

FE

[taxea]

My policy is: believe nothing you haven't personally verified. you may have to amend prior returns.

[mactoolsix]

I believe that on-line courses do not qualify for any education credits.

I have taken many online courses and received a 1098-T. Many colleges use online courses and provide the 1098-T.

However, that being said, upon reviewing IRS Revenue Bulletin http://www.irs.gov/irb/2006-36_IRB/ar10.html, "section 6050S requires any eligible educational institution (institution) to file information returns . . . "

Thus if they don't issue a 1098-T, maybe they aren't an eligible institution?

Mike

[Bonnie]

Back in the beginning when I first started doing this return a few years ago, they found out the university was accredited and eligible for student aid. The couple does not live in Liverpool, the main branch of the school is there with branches in Baltimore

[LCP]

I have taken many online courses and received a 1098-T. Many colleges use online courses and provide the 1098-T.

However, that being said, upon reviewing IRS Revenue Bulletin http://www.irs.gov/irb/2006-36_IRB/ar10.html, "section 6050S requires any eligible educational institution (institution) to file information returns . . . "

Thus if they don't issue a 1098-T, maybe they aren't an eligible institution?

Mike

You could be right but I wouldn't jump to the conclusion that the failure of an eligible institution to fulfill it's obligations has an impact on whether it is still an eligible institution.

[FEDUKE404]

Clarification

Back in the beginning when I first started doing this return a few years ago, they found out the university was accredited and eligible for student aid. The couple does not live in Liverpool, the main branch of the school is there with branches in Baltimore

Your comment ["they (both husband and wife) attend a college out of Liverpool England and do their studies on line."] threw me a bit off course.

FE

[Kram BergGold]

Here is some help

First here is a web site for checking to see if the school qualifies

https://fafsa.ed.gov/FAFSA/app/schoolSearch?locale=en_EN

If it does qualify (correspondence course do qualify the issue is does this particular school accept financial aid) then the taxpayer is entilted to LLC. You will need to read some instuctions or pubs to find out how to deal with a foreign school that does not issue Form 1098-T. Either there is a way or the IRS never thought of this possibility.

The ultimate solution may be to paper file.

[David1980]

Either there is a way or the IRS never thought of this possibility.

The form allows you to say "No" that no 1098t was received. And won't require an EIN when done that way. So if there is a qualified credit the lack of a 1098t shouldn't be a problem.

[Edward]

Found this definition of school in QF Spec Tax Situations:'' A school can be an elementary school, junior and senior high school, college, university or technical, trade or mechanical school. HOWEVER, an on-the-job training course, correspondence school OR SCHOOL OFFERING COURSES ONLY THRU THE INTERNET DOES NOT COUNT AS A SCHOOL".

[Gary2]

Found this definition of school in QF Spec Tax Situations:'' A school can be an elementary school, junior and senior high school, college, university or technical, trade or mechanical school. HOWEVER, an on-the-job training course, correspondence school OR SCHOOL OFFERING COURSES ONLY THRU THE INTERNET DOES NOT COUNT AS A SCHOOL".

That's the definition for the qualifying child age test, for potential dependents between the ages of 19 and 24. It's not the definition for the various educational credits or deductions.