On Feb 4, 7:53*pm, "Phil Marti" <prm20...[at]verizon.net> wrote:
- quote -

Thanks Phil!

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"AaronLS" wrote:

- quote -

Yes.

I can't follow the story (too many "this years" and "last years," which gets
really confusing this time of year). But if she made an error on her 2005,
2006 or 2007 return she can amend it on Form 1040-X and get a refund of any
overpaid tax.

Details about the treatment of grants and education expenses are in IRS
Publication 970.

--
Phil Marti
Clarksburg, MD

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

A friend of mine thinks she may have misreported too much grant money
for tuition last year. She didn't get any money this year, but
received a tax form indicating 2007-2008 school year having grants
issued. Probably was money she got early in last year that didn't
apply to this years taxes. She is thinking she included that in last
year's taxes. So she may have missed out on possible credits/
deductions for tuition last year because she reported too much grant
money, some of which she has to report on this years too.

Is there any way to amend last year's return to correct this, possibly
getting additional refund back(ie reduce the amount of grants to the
correct amount for that year, potentially allowing tuition related
deductions/credits)? Or any other ideas?

She is in a real pickle because when she started work at the job she
has held this year for several months, she got marked as exempt from
tax in the employer's system, and when she asked why tax wasn't being
taken out, she was told repeatedly that it was because she was both a
student and an employee of the university. So now she is doing her
taxes and has discovered that that was incorrect. Now she has almost +
$2,000 owed to the IRS, which she doesn't currently have. From what I
understand, filing an extension will still require her to pay this
money by the April deadline. I am trying to find anyway to minimize
the burden.

Besides these little hurdles, her taxes sound pretty simple. So
unless there's a glimmer of hope, I don't see any reason to expend
more of her money on getting a tax professional involved.

Any opinions on this?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >