Lifetime Learning Credit

[cherylgolich]

Can a taxpayer claim the LLC if they did not receive a 1098-T? Per IRS website the college/university must receive a 1098T. The taxpayer took one continuing education class during the year and the university is telling him he can take the credit even though they don't issue a 1098T for continuing ed classes. 

From IRS.gov:Claiming the credit

To be eligible to claim the AOTC or LLC, the law requires a taxpayer (or a dependent) to have received Form 1098T from an eligible educational institution, whether domestic or foreign. Generally, students receive a Form 1098-T, Tuition Statement, from their school by January 31. This statement helps you figure your credit. The form will have an amount in box 1 to show the amounts received during the year. But this amount may not be the amount you can claim. See qualified education expenses for more information on what amount to claim.

[Just-Lisa-Now-]

Is the school an eligible educational institution?  If so, they should be issuing a 1098T

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/eligible-educational-ins...

[cherylgolich]

thanks Lisa - yes the university is an eligible educational institution and have issued 1098T in the past for the same taxpayer but per the university they do not issue for continuing education classes. 

[TaxGuyBill · Accepted solution]

You or the taxpayer should find out WHY there was not a 1098-T issued.  In some cases, the college is not required to.  Immediately after the law was passed that required the 1098-T in order to claim a credit, the IRS/Treasury released Proposed Regulation saying that is not required for the credit if the college is not required to issue it.

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.

https://www.irs.gov/instructions/i1098et#idm140276358008656

[BobKamman]

What kind of continuing education was this? A couple hours on four Saturdays or weekend nights? To qualify, the taxpayer must be enrolled for at least one academic period beginning in the tax year. “Academic Period” can be semesters, trimesters, quarters or any other period of study such as a summer school session. Academic periods are determined by the school. If the school has decided not to issue a 1098-T, it probably decided that the class was too short to qualify.

Don’t waste your time on the IRS “quick and dirty” information pages. They’re as useless as the FAQ’s that the Administration is trying to pass off as fiat law. Is a 1098-T always required? Here’s what the Form 8863 instructions add:

However, you may claim one of these education benefits if the student doesn't receive a Form 1098-T because the student’s educational institution isn't required to furnish a Form 1098-T to the student under existing rules (for example, if the student is a qualified nonresident alien, has certain qualified education expenses paid entirely with scholarships, has certain qualified education expenses paid under a formal billing arrangement, or is enrolled only in courses for which no academic credit is awarded). If a student’s educational institution isn't required to provide a Form 1098-T to the student, you may claim one of these education benefits without a Form 1098-T if you otherwise qualify, can demonstrate that you (or a dependent) were enrolled at an eligible educational institution, and can substantiate the payment of qualified tuition and related expenses.

[cherylgolich]

Thanks TaxGuyBill!