American Opportunity Credit - Is it a must to provide the EIN?

[vpujols]

There's a dependent student (19) going to a college overseas and the college does not provide a 1098-T.

Last year I entered the 1098-T form manually and qualified for Lifetime Credit and Tuition Deduction credit.

However, the American Opportunity Credit seems to require the Education institution employer ID number (EIN) which is something this specific college in the Dominican Republic does not have.

Is there anyway to claim this credit somehow or not at all if you don't enter an EIN?

[Carl]

If you did not receive a 1098-T, then do NOT tell the program that you did. Simply indicate you did NOT receive a 1098-T. You will still be asked for scholarships, grants, 529 distributions and out of pocket expenses not reported on a 1098-T.

So if you did tell the program you received a 1098-T, you need to go back and delete that 1098-T. (simply changing your answer to no, will NOT delete it.) Then work through the education section again.

[vpujols]

No, we didn't. We told the program we did not receive a 1098-T.

[Opus 17]

Under recent tax law changes, you are not eligible for either the AOTC or the Lifetime Learning credit unless the school issues a 1098-T.  

[vpujols]

Well, TT software allowed the Lifetime Learning credit last year and it is adding it now....am I missing something?

[Opus 17]

---

@vpujols wrote:

Well, TT software allowed the Lifetime Learning credit last year and it is adding it now....am I missing something?

---

The IRS rules are quoted below.

Note that an overseas college probably does not have a US tax number (EIN) which should cause Turbotax to reject the credit.  Even if the college has an EIN, the expenses are not eligible for any tax credits unless the college is accredited by the US Dept of Education to receive US Federal Student Aid.  And in most cases, such schools issue 1098-T forms.

If the school does not issue a 1098-T but you claim the credit because the program will allow it (since there are some circumstances where a form is not required, see below) you should expect an IRS letter requiring you to prove that you qualify for the credit and met the exceptions described below.

Form 1098-T requirement. To be eligible to claim the American opportunity credit, lifetime learning credit, or tuition and fees deduction, the law requires a taxpayer (or a dependent) to have received Form 1098-T, Tuition Statement, from an eligible educational institution, whether domestic or foreign.

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

You may also claim a credit or deduction if the student attended an eligible educational institution required to furnish Form 1098-T but the student doesn’t receive Form 1098-T before you file your tax return (for example, if the institution is otherwise required to furnish Form 1098-T and doesn’t furnish it or refuses to do so) and you take the following required steps: After February 1, 2021 (January 31 falls on a Sunday), but before you file your 2020 tax return, you or the student must request that the educational institution furnish Form 1098-T. You must fully cooperate with the educational institution's efforts to gather the information needed to furnish Form 1098-T. You must also otherwise qualify for the benefit, be able to demonstrate that you (or a dependent) were enrolled at an eligible educational institution, and substantiate the payment of qualified tuition and related expenses.

Educational institution's EIN required. To claim the American opportunity credit, you must provide the educational institution's employer identification number (EIN) on your Form 8863. You should be able to obtain this information from Form 1098-T or the educational institution.

https://www.irs.gov/pub/irs-pdf/p970.pdf

[vpujols]

Thanks for the info.

So why is TT software allowing the credit then? I am answering the questions the software is asking and I told it we do not have a 1098-T and do not have an EIN, we just entered the tuition costs for daughter to attend school (not living expenses, just cost of college).

[Opus 17]

---

@vpujols wrote:

Thanks for the info.

So why is TT software allowing the credit then? I am answering the questions the software is asking and I told it we do not have a 1098-T and do not have an EIN, we just entered the tuition costs for daughter to attend school (not living expenses, just cost of college).

---

The EIN does not seem to be required for the LLC, just the AOTC, although I am also confused on this.  Because there are rare cases where you can claim the credit without a 1098-T (as described in the instructions I quoted), I suppose that is why Turbotax allows the credit without the form--you might be in one of those rare situations. 

Everything is here.

https://www.irs.gov/forms-pubs/about-publication-970