CDL Driving School and Educational Credits

[Chowdahead]

Have a client who plunked down $5,000 cash last year for a CDL part-time training program at a local school.  Sounds to me like a classic Lifetime Learning Credit situation since it is a vocational school https://goo.gl/3NngEg.  TP AGI is $32,000 with 2 dependents.  

However, the American Opportunity Tax Credit also lists "vocational" schools under "Eligible Education Institution" https://www.irs.gov/Individuals/AOTC.  So sounds like the AOTC possibility, which would be much more beneficial.

I haven't approached the client yet, but would the institution need to issue a 1098-T, or would his receipt for payment be sufficient?

 

 

[SaraEA]

The school has to be eligible to participate in federal student loan programs. The school will know if it is, or you can use a look-up tool somewhere in the IRS education credit pubs.  The program must lead to a degree or "other recognized education credential."  A CDL license is not an educational credential so I don't see AOC as a possibility.  (Should we get credit for taking our state driver license exams too?!)  New for 2015 returns:  No education credits without a 1098T.  New for 2016 returns: The "amount PAID" box has to be filled out.  About time.