Effective for 2016 (2016 tax returns filed in 2017)
These changes (see below) disallow a tuition credit or tuition deduction to taxpayers if they have not received a Form 1098-T with all required information.
Under the Trade Preferences Extension Act of 2015 (P.L. 114-27), as described in Sec 804 (Payee Statement Required to Claim Certain Education Tax Benefits), Section 25A(g) of the Internal Revenue Code was amended to add the following new paragraph:
IRC Sec 25A(g) wrote:
(8) Payee statement requirement.--Except as otherwise
provided by the Secretary, no credit shall be allowed under this
section unless the taxpayer receives a statement furnished under
section 6050S(d) ...
Similarly, P.L. 114-27, Sec 804 also amends Section 222(d) of the Internal Revenue Code regarding the Deduction for Qualified Tuition and Related Expenses to also require that a payee statement be furnished or no deduction shall be allowed.
Note that both provisions treat a Form 1098-T issued to the dependent of the taxpayer as issued to the taxpayer.
Also note that per the Instructions to Form 1098-T, an institution is not required to issue Form 1098-T to students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships.
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