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How Do I Get an Educational Credit From the IRS? – Jok

“Dear Jim,

Hi I need your help. I just received a letter from the IRS claiming the information they have for me on file regarding my wage, miscellaneous income, interest income tax withheld, earned income credit etc does not match entries on my 2010 form 1040a. So I went to see my Tax lady and she told me its because I need to submit a educational credit statement to IRS. I know in 2010 my wage was garnished 200 a month and that’s what I told my tax lady and that’s why she added the credit for me but we never submitted anything to IRS from the student loan to verify that my wage was being garnished. Therefore I would like to know do I get educational credit? Its Sunday and tomorrow is Labor Day so I can’t get a hold of my loan people until Tuesday so please respond soon because I’m panicking here. Says I owe balance of 2600. Hope I get this cleared n not owe this. Thank you

Do I get educational credit for my wage being garnished 200 per month for past 2 years? Who to contact for educational em credit statement if I am entitled? My tax person says I am entitled but I want your advice too. Ty

Jok”

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The Answer

Let me address your questions:

Do I get educational credit for my wage being garnished 200 per month for past 2 years? The educational credit is not related to any amounts that you owe. If you qualify, you will be allowed the credit. If the credit generates a refund, it will be applied to any balance you owe. However, I believe your IRS inquiry is proposing additional tax due to the disallowed credit. Get the Form 1098-T from your educational institution and reply to the IRS timely.

Do you qualify for the educational credit? There are several rules to determine if you qualify – see: http://www.irs.gov/uac/Five-Ways-to-Offset-Education-Costs According to the information you provided, the IRS appears to question whether you paid the expenses to qualify. A Form 1098-T with the educational expenses should rectify the inquiry.

Who to contact for educational to get the credit statement if I am entitled? Usually you can find instructions on your University’s web site. If not, contact the student services and ask. Remember, your institution is not required to furnish a 1098-T to non-resident aliens (unless requested by the student) and students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships or grants.

Thanks

Jim

How Do I Get an Educational Credit From the IRS?   JokJim Buttonow is one of the resident debt experts here at GetOutOfDebt.org that helps people for free. Jim is a licensed CPA who spent 19 years with the IRS coordinating large compliance teams of IRS agents and specialized personnel. In the last 5 years, Jim has invented consumer and practitioner software and treatises on how to address many different tax issues. He has also represented many people before the IRS examination, collection, filing, and appeals functions. He currently assists taxpayers on an active pro bono tax practice aimed at serving people in need. He can be reached at IRSMind.com.

If you have a tax question you’d like to ask just use the online form. I’m happy to help you totally for free.

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About Jim Buttonnow

Jim Buttonnow
Jim Buttonow, CPA/CITP, is cofounder of Beyond415. He has more than 26 years of experience in IRS practice and procedure. Reach Jim at [email protected].

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