Education in foreign country

[Judit Kassai]

My client's daughter attending a university in Europe. Without 1098-T has she any chance to get education credit or just deduct the expenses. The tuition fee is more that $10K per year. Any experince? Anyone? Thank you in advance.

[New York Enrolled Agent]

My client's daughter attending a university in Europe. Without 1098-T has she any chance to get education credit or just deduct the expenses. The tuition fee is more that $10K per year. Any experince? Anyone? Thank you in advance.

The university must be an eligible institution to pursue the credit.

IRC §25A(f)
(2) Eligible educational institution
The term "eligible educational institution" means an institution -
(A) which is described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088), as in effect on the date of the enactment of this section, and
(B) which is eligible to participate in a program under title IV of such Act.

[Roland Slugg]

Judit, if you can find the answer by looking at the places cited by NYEA above, you're a better researcher than I am.

The best help I can offer is to refer you to the caption "Eligible Educational Institution" on page 5 of the instructions for IRS form 8863. The "Tip" at the end might be your best suggestion of all.

I can tell you that telecommuting attendance at a foreign educational institution does NOT qualify. (See §481(b)(3) of the Higher Education Act of 1965 (20 U.S.C. 1088)).

Form 1098-T is not mandatory for the year 2016. It is supposed to become a requirement starting in 2017, However, I'm sure there will be exceptions for cases like yours where the student is attending a college or university in a foreign country. Heck, for all I know, even eligible foreign C&Us might prepare and send out 1098-T forms.

[New York Enrolled Agent]

C'mon Roland - When it doubt, go to the regs.

(b) Eligible educational institution --

(1) In general. In general, an eligible educational institution means a college, university, vocational school, or other postsecondary educational institution that is--

(i) Described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088) as in effect on August 5, 1997, (generally all accredited public, nonprofit, and proprietary postsecondary institutions); and

(ii) Participating in a Federal financial aid program under title IV of the Higher Education Act of 1965 or is certified by the Department of Education as eligible to participate in such a program but chooses not to participate.

[TAXNJ]

See attached links if of any help

https://ope.ed.gov/accreditation/

and

https://ifap.ed.gov/ifap/fedSchoolCodeList.jsp