I received a letter from IRS. Stating I owe $1932 for my 2014 tax return. I believe it has to do with a tuition credit I claimed for Laura in amount of $2000 any suggesti

[SweetieJean]

Who is Laura? Your spouse? Dependent?

[Critter]

Did you enter the info from a form 1098-T ?  Did you have a form 1099-Q?

[edh164]

Yes from a 1098T.  I did not have a 1099Q.  Laura is spouse. We file married and jointly

[Critter]

What is the notice number following the CP  or  LTR in the upper right corner?  

Are they asking you to supply supporting docs for the credit or just flat out disallowing it?

[edh164]

Disallowing and I owe the money.

[edh164]

I am reviewing my tax forms and looks like I received a form 1098-T from school and I used this on tax  form 8917.  Numbers look correct on 8917.  Am I using wrong form, was I not supposed to claim this exception?  Any help is appreciated.

[edh164]

I took it as a Deduction.  it is on line 34.  What next?  Can I still claim the 1098T on my taxes and how do I this? What are the next steps?  Hope to not have to pay the added tax.
Thanks for your comments

[Texas Roger]

The Form 8863 is used for tax credits - the American Opportunity Credit (formerly known as the Hope Credit), and the Lifetime Learning Credit. The Form 8917 is used for the Tuition and Fees Deduction. Did you take a deduction or a credit? You can only take one or the other not both. The deduction would be shown on line 34 of form 1040. The credit would be shown on lines 50 and or 68 on form 1040.

[Texas Roger]

Form 1098-T is not entered on your tax return. Information from 1098-T is used to complete form 8917 for tuition and fees deduction OR form 8863 for tuition and fees and in some cases other expenses for credit.  Were the tuition and fees paid for by a scholarship or grant? if so, you can't deduct them. Tuition and fees would be shown in box 1 or 2 of form 1098-T and scholarships or grants would be in box 5. What amounts are in each of those boxes?

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2562661-how-do-i-enter-form-1098-t">https://ttlc.intuit.com/questi...>

[edh164]

Box 1 - $0, Box 2 - $14985 and Box 5 - $0

[Critter]

Well you had enough tuition to do either the deduction or the credit if you actually paid the tuition that was billed... is the IRS asking you to prove you made that payment of $14985?    You can call the number on the notice and ask for a detailed explanation of why it was being denied  and what you can do to prove them wrong.

[Anita01 · Accepted solution]

When the 1098-T shows only tuition billed and none paid, as does yours, the IRS usually denies the credit or deduction until you prove you actually paid the amount.  As suggested above, call the IRS to make sure they're asking you to prove payment.