Teacher took classes through Advancement Courses, does not provide 1098-T. Can I claim course costs? How?

[hrosie616]

Hi. I'm a full-time teacher that took 15 graduate credit hours of courses through Advancement Courses to move up the salary schedule. In my state Advancement Courses partnered with Greenville University, who then issued my transcript when I was finished.

1. Can I claim the cost on my taxes for the courses since I paid out of pocket?

2. If so, how? Does it fall under the $250 teacher expenses or does it qualify under expenses and scholarships? I am confused because my receipts from Advancement Courses say they do not provide a 1098-T form, but that I should keep my registration receipts for tax purposes.

At first, I went under expenses and scholarships and since I technically paid Advancement Courses and not Greenville University, I wasn't sure if I should continue. Since this is not a degree, I am just taking individual classes to further training, I didn't know what to select. Also, I don't know if I select half-time or less than half-time student. 

Thank you for any help. 

[AlanT222]

Yes, you can claim the expenses.  More than likely, you will qualify for the Life Time Learning Credit.  (Explained Later)

To Enter your Education Expenses with or without a Form 1098-T:

1. Select "Federal Taxes" at the top of the page
2. Select the "Deductions & Credits" sub-tab
3. Scroll down to "Education Expenses" and select "Show More"
4. Select "Start" next to "Expenses and Scholarships (Form 1098-T)"

5.  When asked if you have a 1098-T, say "No" and continue.  

Education tax credits can help you with higher education costs by reducing the amount of tax you owe. There are two credits available, the American Opportunity Tax Credit and the Lifetime Learning Credit. We check both of them for you.

American Opportunity Tax Credit (AOTC)

You can use this credit for the first four years of college when working towards a degree.

• The maximum credit is $2,500 per eligible student.
• Must be enrolled at least half time for at least one semester during the tax year.
• Up to $1,000 can be refunded to you.

Lifetime Learning Credit

There is no limit on the number of years you can use this credit for undergraduate, graduate, and professional degree courses, including ones to improve job skills.

• The maximum credit is $2,000 per tax return.
• Can be used when you're only taking one class.
• You don't need to be working towards a degree.
• None of the credit is refundable.

One of the advantages of the Lifetime Learning Credit is that you can take the credit every year for higher education, as long as you meet all of these qualifying requirements:

• You, your dependent, or a third party paid qualified education expenses for higher education
• The qualified education expenses were for an eligible student
• The eligible student is you, your spouse, or a dependent on your tax return
• For the full credit, your 2020 MAGI (modified adjusted gross income) is less than $59,000 ($118,000 if you are filing jointly)
  • For a reduced credit, your MAGI is between $59,000 and $69,000 ($118,000 and $138,000 if you're filing jointly)

[hrosie616]

Hi. I still need more help since I contacted both Advancement Courses and Greenville University and they are stating that they don't think I can claim the expenses under "Expenses and Scholarships" (although they did say that they are not tax professionals). 

My questions still remain. 

1. I went under "Expenses and Scholarships" like you had mentioned and selected "No" for 1098-T, but then it asked me for a Tax ID number of (I don't remember exactly) the school or place and how much money I spent. I wasn't given a Tax ID number for Advancement Courses (and since they said they don't provide 1098-Ts, I thought I shouldn't look for their Tax ID number) and since I partnered with Greenville University, I looked up their Tax ID number. Since then, Greenville University emailed me stating that I should not use their number because they didn't provide me a 1098-T. So how am I exactly supposed to say no 1098-T and actually qualify for the Life Time Learning Credit if no one says I am allowed to use their tax ID. 

I am a teacher. Again, these are courses I took that further my skills and are considered "graduate level" type classes that allow me to move up the salary scale. Advancement Courses partners with local universities for transcripts. 

I just need to know if I did my taxes wrong and if I did, now how do I go about fixing them so I don't get fined. 

[AmyC]

1. Since they won't give you ID, they may not be qualified. The education expenses can only be claimed when paid to qualified colleges.

For education tax credit purposes, the school must be a qualified school at the time you are claiming education expenses and the credit. 

 A qualified school is any college, university, or other post-secondary educational institution eligible to participate in a student aid program Administered by the U.S. Department of Education. 

2. If you filed for a credit to which you are not entitled, you will need to amend. The Form 8863 instructions say: 

Form 1098-T requirement.

To be eligible to claim the American opportunity credit or the lifetime learning credit, 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.

3. How to amend

Once your return is accepted and the finances are settled, you can file an amended return. 

• Save a copy of the original return before doing an amended return. See: 
  • how to file an amended return.
  • I need to amend my state return.
  • Can I e-file my amended state return?
  • Can I e-file my 1040X to amend my return?
• Pay additional tax. Taxpayers who will owe more tax should file Form 1040-X and pay the tax as soon as possible to avoid penalties and interest. They should consider using IRS Direct Pay to pay any tax directly from a checking or savings account for free.
• Use separate forms if amending more than one tax year.
• Track amended return status online. Taxpayers can track the status of their amended tax return in English and Spanish using Where’s My Amended Return?  Amended returns take up to 16 weeks to process and up to three weeks from the date of mailing to show up in the system.