If I attended a foreign university for my undergraduate degree, do I qualify for the American Opportunity Tax credit?

[Georgia2]

I graduated from King's College London in July 2016.

[kitswartz]

My daughter is in the same situation, attending King's College London, and also didn't receive a 1098-T, however the college does participate in a student aid program administered by the US Department of Education.  Their code is G09085.  When I put the info into the turbo tax website, saying that I don't have the 1098-T but want to continue, I eventually get the message "There were no net qualified education expenses".  Doesn't the fact that they participate in the Federal Loan program mean that they are a qualified institution?  Thanks, Kit

[AnnetteB · Accepted solution]

Unless your university participates in a student aid program administered by the US Department of Education, then it would not be considered an eligible education institution for the purpose of the American Opportunity Tax Credit and you would not qualify to claim the credit. 

To be sure, follow this link to look up your university:  https://www.irs.gov/individuals/eligible-educational-inst

For more details about the American Opportunity Tax Credit, see below.

https://ttlc.intuit.com/replies/5358150

[Georgia2]

Thanks! I checked the link you provided and my college appears under the U.S. Federal Student Aid Code List. So, in this case, I do in fact qualify for the credit?

[AnnetteB]

As long as other requirements are met also.  Based on the information in your question, I cannot answer whether you qualify or not.

[Georgia2]

Okay, let me run through the qualifications then.

I paid education expenses in 2016 and was enrolled as a full time student until July 2016.
Currently, my modified adjusted gross income is less then $90,000.
My school appears under the link you provided under the US Federal Student Aid Code List.
I have not used the American Opportunity Tax Credit in the past and I completely my fourth year of college in July 2016.

[AnnetteB]

Based on the information here, it appears that you would qualify.  The credit may be reduced if your AGI is between $80,000 and $90,000.  The best way to know for certain is to go through the education section in TurboTax and enter your information.

[Georgia2]

Thank you! I went through the education section on TurboTax and it says that I qualify. Is that enough to go ahead and apply for the credit with my tax filings this year?

[jonathanbiber]

My school is on the list in the link but TurboTax is saying I can't take the credit bc there is no School TIN Number

[olearytimo]

My son goes to a college on the US Dept of Ed list, but the school does not issue 1098t and does not have an EIN.  I am not trying to take the American Opportunity Tax Credit, but I do want to be exempt from tax on the gain in our 529 since we paid tuition to a qualified school...but Turbotax will not seem to let me do it without an EIN.  Can anyone recommend a method?

[Hal_Al]

You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. You cannot double dip! 

On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution." 

[kartheeksrm]

The otherway around, what if i got a bachelors outside of USA and getting masters in USA. 

My bachelors wasn't eligible to get AOTC because it was not a qualified institution. Now do i not qualify because i already got a four year degree?

[Hal_Al]

Q. Now I do not qualify, because I already got a four year degree?

A. Yes. The foreign degree qualifies as having already completed 4 years of post secondary education.