I received a CP2000 notice from the IRS. They're disputing my education credits from 2015 even though I did receive student loans through FAFSA. Do I have to repay?

[Carl]

What specific credits are they saying you don't qualify for? I would also expect the letter to cite why you don't qualify for the disputed credit also.

[ecupirate68]

It says, "We need to verify the education credits you claimed on Form 1040 line 50. We don't consider the amounts they billed you in box 2 as proof of actual expenses you paid. Provide a signed detailed explanation of the amounts you paid to support the amounts claimed." I applied for student loans through FAFSA and took the full amount they offered, which was more than the cost of tuition. But the loan info on my 2015 taxes was correct, and FAFSA is certainly expecting me to pay it back.

[TaxGuyBill]

Just do what the IRS Notice says:  Provide proof the that college was actually paid that amount (payments include loans).  Ask your college for a financial printout of your account, and that will show all payments that the college received (including loans).

Once you do that, it should straighten things out (assuming the college was actually paid).

You received the notice because your college was dumb enough to use Box 2, rather than Box 1 of the 1098-T.

[Carl]

Take special note here since this pertains to the 2015 return. Deductions and credits are claimed in the tax year they are actually paid. It does NOT matter what year was paid *for*. So if you paid for a 2015 class in 2014, then you should have claimed it on your 2014 return, and not your 2015 return. Likewise, if you paid for a 2016 class in 2015, then you DO claim it on your 2015 return, and you can NOT claim it on your 2016 return.
So pay attention to detail. What matters is the date actually paid, and not the date of the class that was paid for.
Generally, you can log into your college account and go to your financial section and get all the details and breakdown there. Even if you graduated already, if you can remember your login ID and password, you should still have access to your college account.
My daughter graduated 7 years ago, and can still access her accounts at FSU and at UCF.