Claiming Lifetime Learner Credit for Continuing Education Credits as an Educator (with no 1098-T)?

[SteelKels]

I am an educator with a masters degree. I took out-of-state online professional development courses (15 credits worth). I was not required to take these courses by my employer but did so anyways to learn new skills for my classes I teach. The courses were non-degree courses (meaning I was not working towards a degree but still obtained college graduate courses).

My school ( University of La Verne) is accredited and a qualified school. However, their webpage states: "Professional Development Courses do not qualify for Form 1098-T because these graduate-level, non-degree, semester credit courses are not applicable towards a degree. Students are encouraged to keep copies of their receipts. " I also took courses previously through Advancement Credits (registered with Southern University). The other university replied with : "Advancement Courses and its University Partners cannot provide a 1098-T form for these courses, as 1098-T’s can only be issued to students enrolled into a degree program. Instead, students are recommended to ask their tax professional about whether the expenses can be applied as Educator Expenses".  I can find the EIN for both on their websites to manually enter in the tuition/bills paid. 

However, I can not find ANYTHING on the IRS stating that the LLC is only for degree programs. And based on their requirements, I feel like I qualify for the lifetime learner credit (LLC) :

1. Be enrolled or taking courses at an eligible educational institution.
2. Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills.
3. Be enrolled for at least one academic period* beginning in the tax year."

Based on the IRS's information, I feel I qualify for the LLC? Can I submit my deduction even though I have no 1098-T and I took these non-degree accredited gradate courses on my own ?  Am I missing something since both schools claim no 1098-T is allowed? Does not being allowed to generate a 1098-T (as opposed to choosing not to make one) automatically mean the LLC is not applicable?

Thank you! 🙂

[MonikaK1]

According to this IRS webpage, to be eligible to claim the AOTC or LLC, the law requires a taxpayer (or a dependent) to have received Form 1098-T, Tuition StatementPDF, from an eligible educational institution, whether domestic or foreign. 

However, the FAQs at this IRS webpage indicate that, in general, a student must receive a Form 1098-T to claim an education credit, but 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.

An eligible educational institution is a school offering higher education beyond high school. It is any college, university, vocational school, or other post-secondary educational institution eligible to participate in a Federal student aid program run by the U.S. Department of Education. This includes most accredited public, nonprofit and privately-owned–for-profit post-secondary institutions.

If your courses meet all of the qualifications, since your school is an eligible institution, you could choose to claim the LLC. However, you may expect to receive an IRS notice proposing to disallow the credit if the school did not file a Form 1098-T with the IRS. At that point, you would need to provide convincing documentation to the IRS that the courses qualify and the reason why you didn't receive Form 1098-T. 

[Hal_Al]

 Yes, you can claim the LLC because:

1. University of La Verne is on the DOE  list of "Eligible Institutions"

2. You paid tuition

3. The course was taken by the student to acquire or improve job skills.

When asked in TT if you qualify for an exception to the 1098-T, answer yes

[SteelKels]

Thank you.  The other university replied with : "Advancement Courses and its University Partners cannot provide a 1098-T form for these courses, as 1098-T’s can only be issued to students enrolled into a degree program. Instead, students are recommended to ask their tax professional about whether the expenses can be applied as Educator Expenses".

However, I can not find ANYTHING on the IRS stating that the LLC is only for degree programs. Am I missing something since both schools claim no 1098-T is allowed? Does not being allowed to generate a 1098-T (as opposed to choosing not to make one) automatically mean the LLC is not applicable? 

Thanks!

[Hal_Al]

Q. Am I missing something since both schools claim no 1098-T is allowed?

A. No. Somebody at those schools made those decisions for a variety of reasons.

Q. Does not being allowed to generate a 1098-T (as opposed to choosing not to make one) automatically mean the LLC is not applicable? 

A. Probably, but we only know that they chose not to.

Q. Does you not having a 1098-T increase the likelihood that the IRS  will reject your claim?

A. Probably. But, I'd claim it anyway.

From Pub 970, pages 23-24

Overview of the Lifetime
Learning Credit for 2022
Type of program required - Student doesn't need to be pursuing a program leading to a degree or other recognized education credential

Qualified Education Expenses
"For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills"

[SteelKels]

Sorry for the late reply.  What would happen if I claim it an it was not eligible for the LLC? You mention the IRS rejecting it. Would they tell me right away if it did not qualify? Would they charge a fee?

[Hal_Al]

Q.  What would happen if I claim it an it was not eligible for the LLC?

A. You would receive an IRS notice that they think you were not eligible and they recalculated your tax.

Q.  Would they tell me right away if it did not qualify?

A. No. It's usually up to a year later.

Q. Would they charge a fee?

A. Yes there is interest and underpayment penalty.