School won't issue 1098T form as required. Should I file a complaint? If so, how?

Forum|Forum|6 years ago
June 5, 2019
2 replies
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I paid tuition in years 2015, 2016, and 2017 but only received a 1098T form for 2016. I think my school lumped all tuition payment for the entire program into one year (2016) and reported that to IRS as such. I claimed the Lifetime Education Credit in my tax returns for years 2015 and 2016. Now IRS is asking me to explain the credit that I claimed for year 2015 because information from some "third party" (I'm guessing the school) does not support my claim. I'm in the process of dealing with the IRS for that and worry that if I claim the lifetime education credit again for my 2017 tax return, I would run into the same problem. Since the school won't even give me a 1098T form for 2017, they surely would not report the payment I made in 2017. I really don't want to deal with the IRS again a couple years down the road for the 2017 lifetime education credit. The school is not inclined to correct their record and give me a 1098T form for 2017. I want to file complaint against them, but how? To whom? Or should I just let it go and wait to see if IRS will go after me again in a couple of years?

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maglib

Employee

Many schools report when billed and not what was paid. So quite often they bill you for 2017 in 2016 and hence no 1098T for 2017.

Additionally your school may not be an eligible post-secondary educational institution. Search on FAFSA to see if your school was qualified: https://fafsa.ed.gov/FAFSA/app/schoolSearch?locale=en_EN

You also must have attended at least 5 months and took at least 12 credits a semester to be claimed at least part time. to be eligible for any credits.

Educational institutions are required to file a Form 1098-T, Tuition Statement, with the IRS and to provide a copy of the form to the student, for each enrolled student for whom there is a reportable transaction. A reportable transaction includes payments received, amounts billed or refunds made for tuition and related expenses. For the Form 1098-T to be accurately prepared, the educational institution must address boxes 8 and 9. Note that box 8 will be checked if the student was enrolled at least half-time, and box 9 will be checked if the student was enrolled as a graduate student. There are some exceptions where an educational institution is not required to file and provide the Form 1098-T. These exceptions include:

Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program.
Nonresident alien students, unless the student requests the institution to file Form 1098-T.
Students whose tuition and related expenses are waived entirely or paid entirely with scholarships or grants.
Students whose 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.

Here is more from IRS on the AOTC qualifications: https://www.irs.gov/newsroom/american-opportunity-tax-credit-questions-and-answers

I hope this was helpful?

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Lucy11Author

Thank you, maglib, for the quick and thorough answer. A few more questions. The school did say something about reporting what was billed, but they billed me for 2016 in 2015, and I also didn't get a 1098T form for 2015. Since I received a 1098T form for 2016, it's likely that my school is an eligible post-secondary educational institution. Finally, the program lasted a total of 16 months, and I was a full time student receiving academic credits. None the exceptions apply to me.

Natbat123

Hello,

I was wondering if somebody can help me as my school is not cooperating. I was issued a 1098 – T form in 2018 and I have always used financial aid and grants for my school but I still receive a 1098 form and a letter saying that I can qualify for the American opportunity tax credit. So now for my 2021 taxes I went to a tax preparer for the first time who had mentioned this form to me and then I remembered back in 2018 I received this form but had not received it since and I have been in school as a full-time student for the last two years. I did see on the exemptions listed and a comment that the school does not have to send one out if you had grants but I had grants back in 2018 (no out of pocket expenses) and still received one and qualified for the American opportunity tax credit so wouldn’t I still qualify for that same tax credit now and get the 1098 form? These are the questions that I attempted to address my school about but unfortunately the student manager was uncooperative and actually hung up on me after telling me she has other students to worry about. I feel pretty lost and would appreciate any guidance! I know this is an old forum but I was hoping someone can help me out who was having similar issues.
Thank you for anyone who can help!