No 1098-t issued because courses were not passed

[cassgarda]

I attended a community college in Oregon last year (2024) for two terms. I was enrolled for 12 credits each term (full time enrollment for Summer and Fall term). My courses were all online. Unfortunately, due to extenuating circumstances, I was not able to complete my courses and did not pass any of my classes. Everything was paid for with federal grants and loans. I was not issued a 1098-t and when I asked the school (an eligible educational institution per federal guidelines), they stated one would not be issued because I didn't pass any of the courses. Is it correct that they don't have to issue one of the courses were not passed? Can I still claim the education credit since I do still have expenses that were paid and that I am paying back on my loans? None of the classes were dropped, nor was the cost of them refunded according to my student account. I was billed for everything.

[Vanessa A]

Yes, you can still claim an education credit, even if you did not pass the class.  There is not a requirement to pass the class, the requirement is that you are enrolled in the class at least half time. Since you were enrolled full-time, if you are otherwise eligible to claim an education credit, then you can still claim one. 

Yes, you can still claim the credit even if they did not issue you a 1098-T. 

As for whether they are required to issue you one, when you do not pass the class,  This is not one of the specifically stated reasons for a school to not issue you a 1098-T, however, as stated above, if you are eligible, you can still claim an education credit without the 1098-T. 

The qualifications of the credits are below:

 Lifetime Learning Credit

• You can take this for an unlimited number of years
• Twenty percent of expenses up to $2,000
• Non-Refundable meaning this can reduce the amount of taxes you owe, but if your tax liability is less than the LLC, your tax will be reduced to $0 and the rest of the credit is lost. 
• Cannot be claimed as a dependent on any one else's return
• As a Married couple, your income must be below $160,000 for the full credit and below $180,000 for a partial credit

American Opportunity Tax Credit.

• Available for the first 4 years of college
• Max amount is $2,500 per student
• Be enrolled in a degree or credential seeking program
• Not have a felony drug conviction
• Be enrolled at least half time
• cannot be claimed as a dependent on anyone else's return.
• As a Married couple, your income must be below $160,000 for the full credit and below $180,000 for a partial credit

Tax Deductions for Voluntary Interest Payments on Student Loans

What Are Education Tax Credits

[Hal_Al]

After answering no to having a 1098-T, answer yes to qualifying for an exception (that gets you to the entry screens). You do qualify for an exception.

[cassgarda]

Would it be better if I were able to get the school to issue a 1098t? I'm just hesitant to file without one if the school should otherwise be required to issue it, just for the sake of timeliness in receiving my refund and avoiding any delays or possible audit that may come if attempting to claim the AOT without the paperwork and the school's tax id.

[ThomasM125]

It would be better if the school issued you the Form 1098-T. However, it is not required if the school was not required to issue you the Form 1098-T per the following from this IRS article: