Why Are Drug Felons and Graduate Students Getting Education Credits, but Not the Rest of Us?
Question by Memnoch: Why are drug felons and Graduate students getting education credits, but not the rest of us?
People who filed form 8863 with Lifetime Learning Credits are getting their returns with no problems while law abiding undergrads are having their American Opportunity Credit held indefinitely, what is the reason?
Form 8863 line 26 would be the exact place it asks
Best answer:
Answer by Bostonian In MO
Some tax software messed up and forgot to check the appropriate boxes on lines 23 – 26 on Form 8863. A missing answer defaults to the answer marked “STOP!” sending you to line 31 where you claim the LLC. If the LLC is claimed, the credit passes muster and processing continues. If the AOC is claimed on lines 27 – 30, the system kicks the return out for review and correction.
Much of the blame rests with Congress who acted very late on tax legislation for tax year 2012, forcing the IRS and software publishers to race to update their software. When you rush to complete something, the odds of errors creeping in increases substantially.
Catch 22: Most consumer tax software will let you override calculations and enter your own information, but if you do that it won’t let you e-file. (Most professional software does not have this limitation but many pros didn’t catch the problem until after the IRS sent out system messages to the tax prep community sometime last week.)
@ tro: Try reading line 26 of Form 8863. It states: “Was the student convicted, before the end of 2012, of a felony for possession or distribution of a controlled substance??” A “Yes” answer bars the AOC but allows the LLC which has no such restriction.
Answer by tro
I don’t know any place on a tax return that identifies someone as a felon unless it is under occupation
I assume you know for a fact one is and has received the credit, do you know if they attended school?
a felon can go to school, they are not barred from getting a better education
as far as grad students if they reported the years of college that is fraud and if this has been done, they will be found out
grad students are entitled to the Lifetime credit, the AOC is only for the 4 yr college
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