A serious post here! Got a letter a month or so ago from the IRS regarding the 2010 tax year (yeah, I guess they’re a little behind) – apparently we owed thousands of dollars because the education credit wasn’t supported by the 1099-T. WTF? I called a couple of times and finally got a human who told me that Box 1 wasn’t completed, only Box 2. Box 1 is where they put in what you paid and box 2 is what they billed. Well, obviously they wouldn’t be graduating anyone without payment being made, but apparently it’s very common with schools. Something about not wanting to pay the accountants to figure out that the bills were actually paid. yeah, that’s what i thought, too.
What we needed to do was go to the school and request a Summary of Account, which would list all the amounts billed and paid for that 2010 year…which we did. In the meantime, I’d completely forgotten what I was supposed to say or do with this form, so I turned to the helpful IRS website and the actual paperwork mailed to me (THREE COPIES!). The forms mailed all talked about filing a petition with the Tax Court ($60), which sure didn’t ring any bells; I’m pretty sure I would have remembered that part. And the IRS website? let’s just not go there.
So I called the 800 number on the letter – – – and waited 47 minutes before a human answered. Wiped down the dining room and living room floors and straightened out both rooms, too! Agent there basically told me the same thing about that 1099-T: He gets at least a call a day. I just had to fax a cover letter with the Account Summary and should be good to go.
I’m doing this post as a warning for all those who have dependents in college – check that both boxes have been completed on the 1099-T. Had I known it was incomplete, I would have had FirstBorn hustle over there to get a complete form (and trust me, he WOULD have gotten it). From now on I’m gonna check every friggin’ line on these things.