IRS letter re proposed changes to my 1040: education credits...

[wojdyla-dani]

i got a letter from the IRS for a proposed change to my 2014 1040A. They need to verify education credits i took in 2014 claimed on 1040 lines 50 or 68, or on 33 or 44. Can you please help me with next steps? THank you.

[Critter]

It is a simple straight forward question  ... prove you paid the education expenses you said you did ....  Look at the form 8863 for the amount of education expenses you claimed then provide supporting documents that  prove you did pay those amounts claimed. 

If you purchased Audit Defense for your tax return, call Tax Resources, Inc. at 877-829-9695, or report your notice on their web site at http://intuit.taxaudit.com/. Do not contact the IRS. Let Tax Resources contact them for you.

This is the membership email you should have gotten: https://ttlc.intuit.com/questions/1901569-when-will-i-get-my-audit-defense-membership-kit

If you did not purchase Audit Defense:

TurboTax has a special phone number for help with IRS tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

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

Also see the following link on the IRS web site for more help.
http://www.irs.gov/Individuals/Understanding-Your-IRS-Notice-or-Letter

[ricw2311]

Don't touch the 529s, they are simply not worth the aggravation of getting an IRS letter each year!  It is for this reason that I would not recommend the 529 plan to anyone since the IRS sends a letter and questions these expenses each year.  The 529 are an investment that is simply not worth the trouble.  Each year I would receive a notice of proposed changes and each year, I had to go and explain the ed expenses that were used as a justification for the withdrawal.  It would seem to me that by now there would be a transparent way for TT to program the software so this would not occur but no, it continues to happen each year.  I have solid experience in most types of investments and if I had the chance to do it again, I wouldn't go near these 529s with a 10 foot pole- just not worth all the trouble!

[Critter]

25 years in the tax prep business and none of my clients have ever gotten a letter on a 529 plan distribution.