Our dependent attended university overseas. Turbo Tax optimizer is asking for a state zip code even though I said that it is overseas. What do I put that can be accept?

[Mango-muncher]

words are refused - it needs a number.  I tried 00000 but that doesn't resolve the error message

[Hal_Al]

At the top of the 1098-T screen, your are asked if the school had a a foreign address; check yes.  It's easy to miss this because TurboTax default checks the no box.

If you say you don't have a 1098-T,a subsequent screen asks the same question.

[Mango-muncher]

Thanks but that doesn't work.  I ticked the foreign address and entered a foreign address.  I still saw a form 1098-T after that, so I deleted it, but then at the review it still showed form 1098-T.  I can't get rid of that form even though I put in a foreign address and delete the form.  There seems to be a bug in the system.  Please advise how I can submit a return when I can't get rid of form 1098-T whilst keeping overseas educational expenses for the 529 ?

[Hal_Al]

Try deleting and starting over. Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click delete next to the student's name.  You'll then get the "Your Education Expenses Summary" screen again.  Click the "Add a student" button.

You might try a made up number.

[Mango-muncher]

Thanks, I have tried deleting and re-entering and I still get the error.  I have tried zip codes of 00000 and 99999 and still get errors.  I can't submit the form until this review gets its 'error' resolved.  Is there somebody who can help?  I can't call as I don't have a US number and Turbo Tax needs a US number.  Help.

[Hal_Al]

Verify that the school is an eligible institution. 

 To be eligible for the tuition credits, the course must be taken at "an eligible institution". The school should be able to tell you if it is an eligible educational institution. In general, an eligible educational institution is an accredited college, university, vocational school, or other postsecondary educational institution, including accredited, public, nonprofit, and proprietary (privately-owned, profit-making) postsecondary institutions. Additionally, in order to be an eligible educational institution, the school must be eligible to participate in a student aid program administered by the Department of Education. If they issue a 1098-T they are probably an eligible institution.

Enter your school at the link below, to see if it's on the dept. of education list.

https://ope.ed.gov/dapip/#/home

@MayaD , @DawnC , @Bsch4477  - Can you help?

[Mango-muncher]

Thanks but that link for verifying institutions is only for US institutions.  If I search based on the city, I come up with nothing.  I can't find my University there, though previously I have verified with the State education plan that the overseas University is accredited.  However this is not the real question.  The real question is how to submit the return when Turbo Tax will not accept any UNiversity for which there is no EIN number, no State or School zip code.  Even though I noted the University is overseas (and so won't have a valid US state or school zip code) Turbo Tax won't accept that.  I have deleted and re-entered the information so many times.  I have clicked the ' no exemption' as well as the other option, but neither makes a diffence.  I don't have a 1098-T as it is an overseas school and so not required to file (and doesn't produce them).  I just want Turbo Tax to accept my overseas school and not get hung up on the 1098-T form which doesn't exist.  The review always throws up errors no matter what combinations I have tried (made up EIN numbers, made up state and school zip code, deleting the 1098-T (which doesn't actually get deleted) .  I also tried don't apply for the AOC but that doesn't work either.  How can I submit my return when Turbo Tax requires a state, school zip as well as an EIN number which I don't have?

[Hal_Al]

I Googled  "529 plan international schools" and got this reference, among others

https://gfmasset.com/2018/05/list-of-foreign-universities-on-the-us-doe-list-for-529-plans/

[ShirlynW]

To be eligible to claim the American opportunity tax credit (AOTC) or the lifetime learning credit (LLC), 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. 

If the overseas educational institution is not listed in Database of Accredited Postsecondary Institutions and Programs (DAPIP), your daughter is not eligible to receive the educational tax credits.

[Hal_Al]

Q.  Please advise how I can submit a return when I can't get rid of form 1098-T whilst keeping overseas educational expenses for the 529 ?

A. You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board 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. This requires verifying that your foreign school is an eligible institution.

Reference: 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." 

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!  

Delete the 1098-T, since it isn't needed. 

[Mango-muncher]

thanks.  First two points

1) there is no issue about 'double dipping'

3) The University is an accredited University as per the state and also per a website listing all federally accredited universities

I have done this many times and this is what happens

a) Under education expenses I enter the University name and address and then select that it is a foreign university.

b) The next page asks for a federal ID number (which the university doesn't have as it is foreign).

c) I delete the for 1098-T 

d) In the federal review section, in the dependent information worksheet, it says that the school and state zip codes are invalid.  The 1098-T form (which I deleted under (c) above)  actually doesn't seem to have recorded that it is a foreign address even though I noted that under (a) above.  

So.. deleting the 1098T doesn't work.

Putting in fake school and state zip codes don't work (tried 00000 and 99999) 

Result, I can't submit this until those 'errors' are fixed.  However I can't fix those 'errors' as it seems like a software flaw.  What do you advise so that I can submit my returns????

[Hal_Al]

Q.   What do you advise so that I can submit my returns?

A.  Delete the 1098-T and 1099-Q.  This assumes that none of the 1099-Q is taxable. 

The 1099-Q is only an informational document. The numbers on it are not required to be entered onto your (or your student's) tax return.  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." 

The 1098-T is also only an informational document. The numbers on it are not required to be entered onto your (or the student's)  tax return. Receipt of a 1098-T sometimes means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.  It appears you have neither. 

[Mango-muncher]

Where can I delete the 1098T ? I have tried the 'delete 1098 T' button but the 1098T reappears in the review section even when deleted!  I need to have the educational expenses accepted as I have a 529 withdrawal which needs those to justify the withdrawal.

[Hal_Al]

Delete 1098-T: Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click delete next to the student's name.  

 @Mango-muncher  said: "I need to have the educational expenses accepted as I have a 529 withdrawal which needs those to justify the withdrawal."

No, you don't, unless you know that a portion, of the 529 distribution,  is taxable.  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.

If you want to do it anyway (e.g. you want the TurboTax (TT) work sheet showing it's not taxable, for your own records) there are couple of work arounds (I'd do #2):

1. The requirement for the school's ID # and address and zip code are only to fill out for 8863 for the tuition credit. Since you're not claiming the credit, you can use any zip code and a made up EIN.

2. Instead of entering the educational expenses in the education expenses section, enter it in the 1099-Q section of TT. The workaround is: when asked who is the student, check "someone not listed here" (Lying to TurboTax to get it to do what you want does not constitute lying to the IRS). On the next screen, enter the real student's name.  This will eventually give you one simple screen to enter all expenses. 

[Hal_Al]

Delete form instructions https://ttlc.intuit.com/questions/3139989-how-do-i-get-rid-of-my-form-8615