topic The IRS is asking for $2000 from the Education Credit and American Opportunity Credit. My 1098-T doesn’t say I payed anything that year. Do I have to pay this? in Education

The IRS is asking for $2000 from the Education Credit and American Opportunity Credit. My 1098-T doesn’t say I payed anything that year. Do I have to pay this?

gaunterodimm — Wed, 04 Sep 2019 12:13:21 GMT

Re: The IRS is asking for $2000 from the Education Credit and American Opportunity Credit. My 1098-T doesn’t say I payed anything that year. Do I have to pay this?

Critter — Thu, 05 Sep 2019 17:45:12 GMT

If you took the credit incorrectly and they audited the return then you do need to pay the amount back ... if you believe this is incorrect and have proof that you did pay education expenses then you have the option to disagree with the IRS findings ... the notice should tell you how to refute the bill.

Re: The IRS is asking for $2000 from the Education Credit and American Opportunity Credit. My 1098-T doesn’t say I payed anything that year. Do I have to pay this?

Hal_Al — Thu, 05 Sep 2019 18:20:37 GMT

The IRS will go by the 1098-T. But, there are circumstances where box 1 (bx 1 and/or box 2 for years prior to 2018) are blank or zero, but the taxpayer still paid for qualified expenses**. If this is the case, you need to provide the IRS with proof of payment (usually the school's invoices).

**The most common situation is that the spring 2018 term (for example) was billed in 2017 and shows on the 2017 1098-T; but you actually made the payment in 2018. You can claim the American Opportunity Credit on your 2018 tax return.