Yes, you understand things quite well. The codes indicate that the IRS "does not disagree" with your return and issued a refund for a portion of the refund, but is also holding the 2,000 education credit.
Code 420 means the return MIGHT be audited.
We do not know what the IRS will do with your return or any return once the return has been transmitted.
We do know that the IRS will review returns that claim certain credits, including the American Opportunity Tax Credit.
Some returns are randomly selected for the review.
The review may or may not result in a full audit.
Since the credit was not disallowed, it can be assumed that the return is simply part of the IRS compliance to review certain credits, but again, we have no way to tell.
If you reported everything correctly, all you can do is wait until the refund is released, or the IRS sends a letter.
Remember that the IRS will not call and always sets up contact by mail first.
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