My tax return was accepted by the IRS. I got a 1098 T in the mail today. My expenses are less than my scholarships and grants. My refund is too big. What should I do?

[softwareguy]

I filled my tax return before I got my 1098 T in the mail. I edited the information on turbo tax and ended up with a smaller refund than the refund I filled for. So if the IRS approves my return, my refund will be too big. Do I need to amend? Will the IRS tell me if I need to amend? 

[KrisD · Accepted solution]

Yes, if you receive a refund that should be less, you will need to amend. The IRS may or may not catch your error before they process your original return, but chances are the error will not be immediately identified by the IRS. DO NOT ignore this situation, if the IRS corrects the error later, you may be liable for additional fees, interest, and they could restrict your ability to claim an education in the future. 

Wait until your original return is processed, then file the amended return 1040X, but be sure to pay the tax before tax day, which is April 17th 2018.

CLICK HERE for IRS Pub 970 Education Credits

CLICK HERE for IRS information about Amended Returns

CLICK HERE for TurboTax Tools and Tips about Amended Returns

[softwareguy]

Thank you very much for your response. It was very helpful. Cheers!

[KrisD]

Thank you for using TurboTax.