Aoc

[Kram BergGold]

I remember from a year ago or more, that starting in 2016, the AOC could not be claimed if a 1098-T was not issued. I have a client whose child goes to college in Scotland. She is enrolled directly with that school so there is no 1098-T. I know I have to look up whether that school takes US financial aid to see if the school can even qualify. Before I do this, I want to confirm the that a 1098-T is required.

[Rapid Robert]

I remember from a year ago or more, that starting in 2016, the AOC could not be claimed if a 1098-T was not issued. I have a client whose child goes to college in Scotland. She is enrolled directly with that school so there is no 1098-T. I know I have to look up whether that school takes US financial aid to see if the school can even qualify. Before I do this, I want to confirm the that a 1098-T is required.

You don't even need TheTaxBook for this, how about Pub 970?

"For tax years beginning after June 29, 2015, generally tax year 2016 returns for most taxpayers, the law requires a taxpayer (or a dependent) to have received a Form 1098-T from an eligible educational institution in order to claim the tuition and fees deduction, American opportunity credit, or the lifetime learning credit."

Then some exceptions are listed.

[ATSMAN]

From IRS. Gov

For 2016, an eligible educational institution is not required to provide the Form 1098-T to you in certain circumstances, for example:

Nonresident alien students, unless the student requests the institution to file Form 1098-T,
Students whose tuition and related expenses are entirely waived or paid entirely with scholarships or grants, or
Students for whom the institution does not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement with the student’s employer or a government agency, such as the Department of Veterans Affairs or the Department of Defense.

Q20. I did not receive a Form 1098-T because my school is not required to provide a Form 1098-T to me for 2016. Can I still claim an education credit for tax year 2016?

A20. Yes. You can still claim the AOTC if you did not receive a Form 1098-T because the school is not required to provide you a Form 1098-T for tax year 2016 if:

The student and/or the person able to claim the student as a dependent meets all other eligibility requirements to claim the credit,
The student can show he or she was enrolled at an eligible educational institution, and
You can substantiate the payment of qualified tuition and related expenses.

I would check the list to make sure it is an eligible institution.

[Kram BergGold]

Kaput

Based on the two responses there is no reason to check if the school qualifies. The exceptions to the requirement to have a 1098-T do not apply to my client. She is a US citizen attending college in Scotland and paying full tuition.

[mactoolsix]

Based on the two responses there is no reason to check if the school qualifies. The exceptions to the requirement to have a 1098-T do not apply to my client. She is a US citizen attending college in Scotland and paying full tuition.

Kram - reread A20

A20. Yes. You can still claim the AOTC if you did not receive a Form 1098-T because the school is not required to provide you a Form 1098-T for tax year 2016 if:

The student and/or the person able to claim the student as a dependent meets all other eligibility requirements to claim the credit,
The student can show he or she was enrolled at an eligible educational institution, and
You can substantiate the payment of qualified tuition and related expenses.

Why would your student not qualify?
We have done several "out of the country" colleges and found they have all qualified.
If in doubt, have the student ask the college administration department - some foreign universities are not listed in the data base, but the school will be able to provide the necessary information.