Education Credit

Taxpayer's school does not issue Form 1098-T. The reason is that the school does not participate in the Federal student aid program.

If the taxpayer can prove that the school is eligible to participate in the federal student aid program but just they choose not to participate in it, can the taxpayer still get the education credit?

Taxpayer's school does not issue Form 1098-T. The reason is that the school does not participate in the Federal student aid program.

The institution is still required to file 1098-T, as that is not one of the exceptions to the filing requirement. "File Form 1098-T, Tuition Statement, if you are an eligible educational institution. You must file for each student you enroll and for whom a reportable transaction is made."

"Exceptions. You do not have to file Form 1098-T or furnish a statement for:
Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program;
Nonresident alien students, unless requested by the student;
Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships; and
Students for whom you do not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement between an institution and the student's employer or a governmental entity, such as the Department of Veterans Affairs or the Department of Defense."

If the taxpayer can prove that the school is eligible to participate in the federal student aid program but just they choose not to participate in it, can the taxpayer still get the education credit?

As you probably know, Form 1098-T is required by law in most cases in order to claim AOTC or LLC. And isn't TY2018 the first year that Box 1 amounts are mandatory, after the IRS waived penalties for two (or was it three) years?

And don't forget your paid preparer due diligence requirements on Form 8867, for the AOTC. I personally would not be willing to incur the $520 penalty simply because the student says the school met the eligibility requirements but didn't feel like meeting the 1098-T filing requirement.

"If any institution did not provide Form 1098-T, [be prepared to provide] copies of other documents that verify enrollment, such as transcripts or other enrollment forms. The document(s) must include the institution’s name, federal identification number, dates of enrollment, and the student’s enrollment status (more than half time, not a graduate student)
• Copies of proof of payment of tuition and fees such cancelled checks, bank statements, credit card statements or receipts. Form 1098-T may serve as proof of payment IF payments received are recorded in Box 1"

Section 25A(f)

(2) Eligible educational institutionThe 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.

. Is "eligible", not "does".

You might consider checking the US Dept. of Education data base and see if the school is an "eligible education institution"

You might consider checking the US Dept. of Education data base and see if the school is an "eligible education institution"

I know the list that you have mentioned. But does the list include institutions that participate in their student aid program? Or does it include institutions that are eligible to participate in the program? I think it is the former. But the key to our topic here is the later question.

Use this to see if scholl has FSC code. If so then eligible ed school. https://fafsa.ed.gov/FAFSA/app/schoolSearch

Use this to see if scholl has FSC code. If so then eligible ed school. https://fafsa.ed.gov/FAFSA/app/schoolSearch

Does the list to be searched in that link include schools that are eligible to participate in the Federal student aid program? Or does it only include schools that actually participate in the program?

The issue here is that while the reguirement for education credit says schools that are eliguble to participate in the program, so far all the information that we can find online are only schools that actually participate in the program.

The issue here is that while the reguirement for education credit says schools that are eliguble to participate in the program, so far all the information that we can find online are only schools that actually participate in the program.

Why are you ignoring the fact, as posted above, that an eligible institution is required to issue a 1098-T? It seems your time would be better spent inquiring of the institution the real reason why they did not issue one.

Here you can find the code the FSC code Weissea posted.

https://www.irs.gov/credits-deductions/ ... ional-inst

Per the link above

The Federal School Code List contains the unique codes assigned by the Department of Education for schools participating in the Title IV federal student aid programs. Students can enter these codes on the Free Application for Federal Student Aid (FAFSA) to indicate which postsecondary schools they want to receive their financial application results.

But as you can see, it does not include schools that are not participating in Title IV student aid programs.

It also states the following:

TIP: A small number of schools, not on this list, may be eligible educational institutions. So, you may need to ask the school.