Originally Posted by Islandmama62
Must we have a 1098T to verify expenses paid, or can we use the invoice from AIFS, provide the London School's US School Code, and add the tuition and required fee amounts paid to the London school to what he paid his regular US school last Winter and Spring quarter?
No foreign educational institution issues 1098T. As long as the college in london is qualified under IRS rules then ,you can deduct your kid’s educational expenses.On the contrary, if the college is not qualified under IRS rules, you can’t deduct anything. Certain educational institutions located outside the US also participate in the U.S. Department of Education's Federal Student Aid programs. Actually, you do not need a 1098T for ed. expense tax deduction on your return. You can keep ed expenses receipts that you receive from a college in london / invoice from aifs as evidence. The government wants proof that you are taking legitimate ed. deductions. Receipts showing exactly what you spent your money on is the best proof that you can provide. Receipts are important if the IRS decides to audit your tax return. You'll need to provide them to the IRS to prove that the deductions you claimed really were educational expenses.
In most cases federal student loans like the Stafford Loan, the Perkins Loan, and the PLUS Loan can be used to study abroad. Thefederal loans can only be used to pay for expenses like tuition, room & board, and other fees directly related to your kid’s educational costs in uk. If you pay interest on a student loan, you can deduct the value of that interest from your taxable income. The deduction for interest paid on a student loan is one of several tax benefits for education. It is a special deduction that can be taken on your U.S. federal income tax return as an adjustment to income(Your filing status is any status except married filing separately). The deduction reduces your income subject to tax, and you do not need to itemize in order to take this deduction.