Read
the IRS letter carefully to see which technicality they are after you for.
The IRS
has begun cracking down on schools that send out a 1098-T with box 1 blank.
They are not always accepting an amount in box 2, of a 1098-T, as proof
that you paid tuition. There was no additional proof required at the time you
filed your return. The IRS wants the proof , now, after the fact. TurboTax did
nothing wrong. There was nothing you could do to prevent this. This is a
failure of the tax system. The school could have done a better job with
the 1098-T, but even that statement is an oversimplification. You only
need to prove you actually paid tuition, with school statements and cancelled
checks and/or bank or credit card statements.
A
student, under age 24, is only eligible for the refundable portion (the $1000
on line 44 of form 1040A [line 68 on form 1040]) of the American Opportunity
Credit if he supports himself by working. You cannot be supporting yourself on
parental support, 529 plans or student loans & grants. You must have
actually paid tuition, not had it paid by scholarships & grants. It
is usually best if the parent claims that credit. The age 24 rule is another common reason for an IRS letter. You may only need to prove, to them,
that more than half your support came from earned income.
Also See
https://www.irs.gov/individuals/education-credits-questions-and-answers Scroll
down to “I received a letter from the IRS questioning my AOTC claim. What
should I do?”
