kjgc1991
New Member

CP2000 says 1099Q amount is "income", which affected other areas of tax return. Will sending my 1099Q and 1098T resolve all issues?

Received a CP2000 because my 529 was calculated as income, despite my distribution being lower than my qualified education expenses. I only used my 529 account for tuition and books. The additional "income" the IRS thinks I owe affected other areas on the CP2000, including putting me over the income limit for a $200 retirement tax savings and stating I should have paid $1,588 in tax on a 5329 form. It also stated that I owe back the $2000 lifetime learning credit (I'm in grad school and can't get AOC), even though my education expenses less the $2000 credit are still more than my 529 distribution amount. If I send in my 1099q and my 1098-T, will the $200, $1,588, and $2000 issue be resolved as well?