topic Re: penalty after amending in After you file

penalty after amending

denno — Mon, 15 Feb 2021 00:32:39 GMT

Trying to decide if it's worth amending my 2019 returns to remove my 2 dependent children so they qualify for educational tax credits. I filed 3 separate 1040s for 2019--amending would result in additional refund amounts of about $1400 and $500 for the 2 children respectively. However, I would have additional federal tax due of $260. How do I calculate the late fees/interest that I would also get hit with?

Re: penalty after amending

Mike9241 — Mon, 15 Feb 2021 09:18:35 GMT

Under IRC code section 25A(g)(3) no credit is allowed to an individual who can be claimed as a dependent on another's return. your dependent children are not entitled to claim the credit.

Re: penalty after amending

fanfare — Mon, 15 Feb 2021 14:08:51 GMT

your kids' 1098-T goes on your tax return and you collect the tuition and expenses credits.

If you didn't do it that way you only have to amend one tax return, yours.

Re: penalty after amending

denno — Mon, 15 Feb 2021 14:33:04 GMT

When I check the boxes for can be claimed as a dependent/not being claimed as a dependent, TT adds the credit.

Re: penalty after amending

Cynthiad66 — Thu, 18 Feb 2021 01:40:25 GMT

Yes. Must be claimed as a dependent to claim the credit.

Qualifications for claiming the American Opportunity Tax Credit are:

You paid an eligible student's qualified education expenses for higher education at any college, university, or vocational school with a student aid program administered by the US Department of Education.
The eligible student is you, your spouse, or a dependent on your return.
For the full credit, your MAGI (modified adjusted gross income) is less than $90,000 ($180,000 if you're filing jointly).
- For a reduced credit, your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you're filing jointly).

An eligible student is defined as a student who:

Is enrolled at least half-time in a program leading to a degree, certificate, or other recognized credential.
Had at least one academic period beginning during the year.
Didn't claim the American Opportunity Tax Credit for more than three previous years.
Didn't complete the first four years of post-secondary education before the beginning of the year.