The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Ramza Beoulve on September 27, 2015, 07:27:11 AM
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I received a CP2000 notice from the IRS stating that their computers found an error with my 2013 return. The CP2000 says my tax preparer mistakenly claimed the American Opportunity Tax Credit for me. My tax preparer did not notice my 1098-T clearly had me marked as a graduate student nor did he notice the school did not mark me as at least half-time.
However, my low income for the year ($30,204, AGI of $27,704 due to deducting student loan interest) and the fact that I did have $16,122.07 billed for tuition less $8,003.53 in scholarships and grants led me to file an amended tax return to claim the lifetime learning credit instead. I also dug up my 2013 Form 5498 to claim the Saver's benefit.
- Removed the American Opportunity Tax Credit
- Received the Lifetime Learning Credit
- Received a $200 Saver's Credit
I went from owing a principal of $2,500 to $676.
- How should I phrase my letter?
- Do I have to explained in writing what amendments I made to my 2013 1040 Form?
- What documentation should I include besides my 1040X, 1098-T and 5498?
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I think your last three points are exactly what you do. Respond with a nice letter stating the changes and that you filed an amended return. If you think you still owe any money, include check with it. My only recommendation is to make sure the letter doesn't come across as contentious.
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The original principal was $2500 and the interest was $112. Do I make an estimate of how much the interest would be if I send in the check? I know the APR is 3%. Or do I wait for a response with a final total?