TIGTA Press Release - Education Tax Credits

[Edward]

Was reading a TIGTA Press Release of Nov 19, 2009 and here are some astonishing highlights from the paper:

a. In a review of 2006 and 2007 returns there was a total of 372,169 taxpayers who erroneously claimed a total of 532 million in Hope Credits.

b. Some of the taxpayers who erroneously claimed the Hope Credit were IRS employees.

c. TIGTGA is firmly against the educational institutions completing the box regarding "Qualified Tuition and Related Expenses" and highly recommend that "Amounts paid by the student" be completed ONLY as this figure is the amount used to determine how much credit the student may qualify for.

d. The IRS requires educational institutions to complete and mail form 1098-T but it does NOT USE the Form or accept it as supporting document as the 1098-T and form 8863 is not matchable, and therefore not acceptable documentation to support educational expenses paid.

e. Educational institutions expend approximately 5.1 million hours each year to complete Forms 1098-T at an estimated mailing cost of 3.8 million dollars.

Interesting and confusing so wonder how TIGTA was even able to come up with the figures in a. above. Too, wonder how many prisoners took a cut on this credit? No wonder IRS has recently come forward with a "Real-Time Tax System Initiative" to cure similiar problems within the taxing

industry.

[Jack from Ohio]

I wonder how many were "self-prepared?"

[BulldogTom]

quit picking on the ed credits! My oldest just finished his first semester. I was working on my own return today and was very happy to see the credit. I have 7 more year to collect on that credit. Leave it alone!

Tom

Lodi, CA