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Synthwave
New Member

What should I do if I believe a turbotax assistant advised me to answer a question incorrectly.

I had a turbotax "helper" look over my taxes to help make sure I answered my questions correctly as I have extreme issues of self doubt. I thought I had most of it taken care of but forgot to fill out my American Opportunity Credit as I was a full time student and qualified. The problem is I was unsure if I had qualified for the refund portion of it as I had been on unemployment for the tax year that I was filing since I lost my job to the coronavirus. I had earned just under a grand in the tax year that I started receiving pandemic unemployment benefits for and I just learned this year that unemployment is considered unearned income. When I was referencing my previous tax year while filing this year I saw the question that asked "Did your earned income exceed one-half of your support?" and it was answered "Yes"on last years return. Now that I have clarification around this question I have no idea why she would have filled out yes unless the questions she asked me determined that I did support myself half way. I have been able to support myself through savings, UI benefits, grants/scholarships and loans. I realize none of these are earned income and I am worried how I will be penalized for this mistake. Even worse, because she was an individual who I accessed through the chat help function (but had control over my form and filled things out for me) my tax form says, "self prepared". So I have no proof that this was a mistake made on her part and I worry that this will create issues for me. This was an unintentional mistake and I have never had to amend a tax return before. What should I do? Will I be harshly penalized? What are the interests rates for something like this a year and a half out from filing?

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1 Reply
Cynthiad66
Expert Alumni

What should I do if I believe a turbotax assistant advised me to answer a question incorrectly.

A student eligible for the American Opportunity tax credit: 

 

Has not completed the first four years of post-secondary education

 

Enrolls in at least one academic semester during the applicable tax year. 

 

Maintains at least half-time status in a program leading to a degree or other credential.

 

IRS will review the return and determine the earned vs unearned income.  If you are not entitled to the deduction the IRS will issue a notice of adjustment to you.

 

TurboTax is  very responsible in assuming accountability for actual mistakes made.  If it is determined that there is an error caused by TurboTax, you can contact TurboTax to present your case.  IRS does not normally penalize for mistakes, which occurs often, they may charge interest if you owe because of that mistake.

 

Honestly, it does not seem that you will have an issue based on the information you provided.

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