Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
jpag8
New Member

I received a bill from the IRS for educational credits from my 2015 taxes

 
1 Best answer

Accepted Solutions
Hal_Al
Level 15

I received a bill from the IRS for educational credits from my 2015 taxes

See   https://www.irs.gov/individuals/education-credits-questions-and-answers Scroll down to “I received a letter from the IRS questioning my AOTC claim. What should I do?”

Read the IRS letter carefully to see which technicality they are after you for.

A student, under age 24, is only eligible for the refundable portion (the $1000 on line 44 of form 1040A [line 68 on form 1040])of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit.  The age 24 rule is a common reason for an IRS letter. You may only need to prove, to them,  that more than half your support came from earned income.

The other common requirement is you only need to prove you actually paid tuition, with school statements and cancelled checks and/or bank or credit card statements. The IRS has begun cracking down on schools that send out a 1098-T with box 1 blank. They are no longer accepting an amount in box 2, of a 1098-T, as proof that you paid tuition.

View solution in original post

2 Replies
Hal_Al
Level 15

I received a bill from the IRS for educational credits from my 2015 taxes

See   https://www.irs.gov/individuals/education-credits-questions-and-answers Scroll down to “I received a letter from the IRS questioning my AOTC claim. What should I do?”

Read the IRS letter carefully to see which technicality they are after you for.

A student, under age 24, is only eligible for the refundable portion (the $1000 on line 44 of form 1040A [line 68 on form 1040])of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit.  The age 24 rule is a common reason for an IRS letter. You may only need to prove, to them,  that more than half your support came from earned income.

The other common requirement is you only need to prove you actually paid tuition, with school statements and cancelled checks and/or bank or credit card statements. The IRS has begun cracking down on schools that send out a 1098-T with box 1 blank. They are no longer accepting an amount in box 2, of a 1098-T, as proof that you paid tuition.

Kat
Level 15
Level 15

I received a bill from the IRS for educational credits from my 2015 taxes

Your tax notice from the IRS will have information regarding the bill.  Read your notice carefully.  The IRS is not always right.  There should also be a contact telephone number within your notice to contact the IRS directly.

Review your notice to see if you agree or disagree with the IRS' assessment.  If you disagree, the notice will tell you how to respond and give you a specific deadline (which you definitely want to meet) for response.  You will need documentation to support your position.

If you, after reviewing the notice, agree with the IRS, pay the tax due as soon as possible.  

I'm including a link to a TurboTax webpage that may help you better understand your notice, as well.

https://support.turbotax.intuit.com/irs-notice/audit-support/

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v