How to verify education credits if i got a notice of deficiency?

ram434 — Mon, 03 Jun 2019 19:09:15 GMT

Read the IRS letter carefully to see which technicality t...

Hal_Al — Mon, 03 Jun 2019 19:09:16 GMT

Read the IRS letter carefully to see which technicality they are after you for.

You may only need to prove that you actually paid tuition, with school statements and cancelled checks and/or bank or credit card statements. We are seeing frequent examples of this, here, in the TurboTax AnswerXchange

Another situation is that 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 a common reason for an IRS letter. You may only need to prove, to them, that more than half your support came from earned income.

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.

TurboTax FAQ https://ttlc.intuit.com/questions/3383321-why-didn-t-i-get-a-credit-or-deduction-for-education-expenses

topic How to verify education credits if i got a notice of deficiency? in Education

How to verify education credits if i got a notice of deficiency?

Read the IRS letter carefully to see which technicality t...