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?