Amended Tax Return for Education Tax Credit

I didn’t correctly claim college education expenses on form 8863.  What should I do?
File an amended return.  You  have three years after the deadline for filing your original federal tax return to file an amended return if you missed a tax break or need to make other changes. You’ll need to file a separate Form 1040X for each year you’re amending. Enter the year you’re amending, note the changes you are making, and attach any tax forms that are affected by the change like form 8863 Education Credits.
The IRS takes up to 16 weeks to process the amended federal return. You can check its status starting three weeks after you file using the Where’s My Amended Return Tool. The 1040X has to be mailed in to the IRS.  Electronic filing is not available.  
The American Opportunity Credit is worth up to $2,500 per student for each of the first four years of college. The credit is based on 100% of the first $2,000 spent on qualified education expenses and 25% of the next $2,000 spent on eligible expenses for each year of college. The Lifetime Learning tax credit is equal to 20% of the first $10,000 spent on college per student.
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What mistakes happen commonly that an amended return can fix?

1. Failing to claim either credit can be corrected and result in an additional refund.  
2. Claiming scholarships as income for housing can increase a credit and maximize your additional refund on an amended return.
3. Claiming education tax credit when another family member paid the tuition is allowed and will result in additional income.
4. A working child can obtain a refundable $1,000 American Opportunity Tax Credit when they claim themselves and request the additional refund on an amended tax return.
5. Claiming the wrong credit can be corrected on an amended return.
6. Claiming multiple credits for multiple students can be corrected on an amended return.
7. Claiming the portion of qualified education your employer did not reimburse can be corrected on an amended return.
8. Adding a qualified dependent to your return and claiming their education tax credit can be corrected on an amended return.
9. Correcting an IRS matchup notice by switching in the 5th year of college to the Lifetime Learning tax credit can be corrected on an amended return.
10. Correcting an IRS matchup notice by switching to the Lifetime Learning tax credit for a part time student can be corrected on an amended return.
    

What information will I need to file an amended return?
Documentation you will need will be your original filed return, your form 1098-T, your calendar year college payment and invoice printout.  You may need a history of your education tax filing regarding the four years per student American Opportunity Tax Credit rule.  

What if I need help filing an amended return?
A tax preparer who files amended returns regularly can give you a reasonable fixed fee quote and handle the filing process for you.  Contact us if we can be of assistance.

Disclaimer: This article is intended for informational purposes only. Nothing contained on this website is tax or legal advice.  You should seek legal counsel before acting upon information on this website.

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