Tax Disadvantage of Attending Non-Title IV Schools

[sanantone]

Unfortunately, the federal government didn't take into consideration schools like Patten University when writing the rules for education credits and deductions. When a school does not participate in Title IV funding (federal financial aid), a student will not receive a 1098-T form and can't report the tuition payments on his or her tax return. It's kind of odd because I received a 1098-T form just for purchasing TECEPs from TESC, but I wouldn't get one if I paid for a whole degree at Patten, Penn Foster, American College of Education, etc.

https://support.patten.edu/entries/39935...ed-school-

[dfrecore]

Well that stinks! There are other schools out there, namely Christian schools, that also don't participate in Title IX.

Why should a school not participating in federal financial aid mean that you can't claim the tuition expenses on your taxes?!!? Another way the Federal Government tries to maintain control of things, and pick winners and losers, and punish those who don't go along with their system.

[strawberrygreen]

I think you still qualify for the education tax credits if the school is a federally recognized institution, even if they don't accept federal aid. Southeastern Baptist Theological Seminary does not accept federal aid, but they send out a 1098-T form each year. Patrick Henry College doesn't take federal monies either, but I called and asked if students studying there can use the federal tax credits and they were quite definite that yes, they could, because PHC is a federally recognized educational institution.

[acamp]

Well that stinks! There are other schools out there, namely Christian schools, that also don't participate in Title IX.

Why should a school not participating in federal financial aid mean that you can't claim the tuition expenses on your taxes?!!? Another way the Federal Government tries to maintain control of things, and pick winners and losers, and punish those who don't go along with their system.

I know this is an old thread, but do you know if any tax laws have changed in that they will issue you a 1098 even if the college doesn’t offer financial aid?

[davewill]

Yes, I think this thread may be too pessimistic.

https://www.irs.gov/credits-deductions/i...ional-inst

An eligible educational institution is a school offering higher education beyond high school. It is any college, university, trade school, or other post secondary educational institution eligible to participate in a student aid program run by the U.S. Department of Education.
This includes most accredited public, nonprofit and privately-owned–for-profit postsecondary institutions.

If you aren’t sure if your school is an eligible educational institution:

• Ask your school if it is an eligible educational institution, or
• See if your school is on the U.S. Federal Student Aid Code List. 

TIP: A small number of schools, not on this list, may be eligible educational institutions. So, you may need to ask the school.