I forgot to add document in previous years

[aaron1317]

So I forgot to add my Robinhood Tax Documents 1099 when i filled last year for the year 2020, and i Forgot to add my College 1098-T form from 2020 on my 2019 taxes i filled.Reason being, I thought Every document was like a W-2 arriving by Jan 31st, and didn't know1098-T i would get one as i didn't know it existed, and was my first year with stocks and had no clue either not thinking.

Can i Amend these still? Is it too late? What do i do? The whole sales for my Robinhood was about $200, and i forgot to add all my expenses for my College two years ago as I am new with filing taxes, I am now 20, and was 18 and 19 then.

[JohnW152]

Yes, you can still amend your prior-year returns to include these items.

Please see the TurboTax Help article How to amend (change or correct) a return you already filed for guidance.

Generally, for a credit or refund, you have to file Form 1040-X within three years, including extensions, after the date you filed your original return, or within two years after the date you paid the tax, whichever is later.

[Critter-3]

If you were still claimed by your parents back then the college information should have gone on their tax returns ... only they could have gotten the credit.   

[aaron1317]

Well, my parents stopped claiming me since I started a FT job in 2018, so I was independent then. In 2020 I was officially moved out on my own 100%. This return was I believe for 2019 year so I filed it in 2020. Is it still possible to add this credit & get those taxes back that I paid for my college expenses?

[fanfare]

The AOC is $2,500 or your tuition outlays, whichever is less.

[Vanessa A]

How old were you then?  Did they just choose not to claim you or they were not able to claim you? 

If in 2019, you were still living at home, under 24 and were a full-time student, they were able to claim you.  If they were able to claim you, even if they did not claim you, you cannot claim the education credits, only they could. 

[aaron1317]

I’m not sure if they could or not, but I was 18 and when I started I wasn’t full time I believe until the following year, I’m not really sure. But i went through the questionnaire in 2019 and it shows me eligible for the Opportunity credit. I was working full time, & when I filed it in 2020 I was already moved out on my own in my own place. 

also, even if I worst case cannot claim the credit, can I just amend the The return anyways just to add that tax form? Is it safe to leave as is? I hear most people run into trouble if they pass 3 years.

[AmyC]

Yes, you will want to amend but first talk to your parents. Find out which years they claimed you. If you file by April 15, you will qualify for a refund for 2018. After that, the 3 year period for a refund will be over and no refund will be allowed. Start with 2018 since it is time sensitive. Determine if parents claimed you along with what you filed originally. Move through each year amending and correcting forms.

If your 1098-T boxes 1 and 5 are close, you will want to claim some of box 5 as room and board. The goal is to end up with $4k spent on tuition and required supplies to get the full AOTC credit.

Any years that you were claimed by your parents are years they get the 1098-T. However, if you earned enough to claim yourself, they may need to amend their return. It may help to review the IRS Worksheet for Determining Support. and go through the quick quiz Whom May I Claim as a Dependent?

[aaron1317]

Okay so when I filed in 2019 for the 2018 year that was my last return where I checked someone can claim me as a dependent. They haven’t claimed me as a dependent since 2018 when I first started filing alone they did only the first year for 2018. 

it shows I was eligible to be claimed, so do I have to amend and they get the tax credit or how does that work? I’m not really sure on the answers about half support, but yes they just helped me with housing costs only and I was working covering everything else. So if I claim the credit or not I still need to amend this? 

[DMarkM1]

You need to amend your tax year 2020 return for sure to add the missing Robinhood income 1099 document.  Since you indicate you were officially moved out and on your own 100% for 2020 you can include the school 2020 form 1098-T on your return.  

Tax year 2019, appears to be a transition year.  If you lived with your parents at least 1/2 the year (temporary absence due to attending school is time living with them) and you did not provide more than 1/2 of your own support and you were a full-time student for any part of 5 months of the year, you would be a dependent on your parent's return for tax year 2019.  You should amend your return to indicate you could be claimed as a dependent.  Your parents would also amend their 2019 return to include the form 1098-T on their return.

However, if you fail any one of those tests above you would not be a dependent.  You should amend your 2019 return to include the 2019 1098-T on your return.

It appears you were a dependent for tax year 2018 and both you and your parents filed that way.  If your parents did not include the form 2018 1098-T on their 2018 tax return they should amend to include it.  

Additionally, since you were not a dependent for tax year 2020 you also would need/want to review the Recovery Rebate Credit questions and if you did not receive stimulus payments for rounds one and/or two you would be eligible for that credit as well.