Be Careful With Education Credits
According to a Treasury report last month, taxpayers wrongly received nearly $3.2 billion in American Opportunity Tax Credits (AOC) between Jan. 1, 2010 and May 28, 2010 . The report attributes the error to ineffective IRS procedures for the review of education credits. The Treasury has forecasted that an additional $12.8 billion in wrongfully claimed education credits will be granted over the next four years unless the current system of review is modified. Here is a breakdown of the errors: · $2.6 billion to 1.7 million individuals who weren’t even attending college · $550 million went to students who didn’t attend school at least half-time or who were in graduate school, both contrary to the tax laws · $88 million to students who were claimed as dependents on someone else’s tax return · ...