How do I fight the IRS?

Skippy

"The only things that stand between a person and what they want in life are the will to try it, and the faith to believe it's possible" Rich Devos

I found this on the internet.  Sounds like for the 1st tax credit, only eligible fore the first two years of college.  For both, you may not qualify if you are above certain gross income, or married, filing separately.  Do any of these apply to you?


There are two education tax credits available, the Hope Credit and the Lifetime Learning Credit. The credits are based on education expenses paid for you, your spouse, or your dependents. During any particular year, you can claim only one of the credits for each student.
The amount of the credit is determined by the amount you pay for "qualified tuition and related expenses" for each student and the amount of your modified adjusted gross income (modified AGI).
Expenses that qualify are tuition and fees required for enrollment or attendance at an accredited college, university, vocational school, or other post–secondary educational institution that is eligible to participate in a student aid program administered by the Department of Education.
Qualified expenses do not include room and board, insurance, transportation, or other similar personal, living, or family expenses. Qualified expenses may include fees for books, supplies, and equipment only if the fees must be paid to the school for the student's enrollment or attendance. In addition, qualified expenses may include student activity fees if the fee must be paid to the school for the student's enrollment or attendance.
You can claim a Hope Credit only for an "eligible student." An "eligible student" is a student who:
1. As of the beginning of the year, has not completed the first two years of post–secondary education (that is, generally is a freshman or sophomore in college).
2. Is enrolled in a program that leads to a degree, certificate, or other recognized educational credential, for at least one academic period beginning during the year.
3. Is taking at least one–half of the normal full–time workload for the student's course of study for at least one academic period beginning during the calendar year, and
4. Is free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the year.
You can claim a Hope Credit for only two tax years for each eligible student. An eligible student can be you, your spouse, or your dependent for whom you claim an exemption.
The Lifetime Learning Credit is not based on the student's workload. It is allowed for one or more courses that the student takes at an eligible educational institution. The credit is not limited to students in the first two years of post–secondary education. Expenses for graduate–level degree work are eligible. However, to be eligible for the credit, the student must be taking course work in order to acquire or improve job skills. There is no limit on the number of tax years for which the Lifetime Learning credit can be claimed for each student. The amount you can claim as a credit does not vary (i.e., increase) based on the number of students for whom you pay qualified expenses.
Both the Hope Credit and Lifetime Learning Credit may be reduced, or eliminated, if your modified adjusted gross income exceeds certain limits, based on your filing status. You cannot claim either credit if you are married filing a separate return. The credit is claimed on Form 8863 (PDF).

Basil, there is alot more info on the irs website.  Another thing I'm thinking, is that they are acting almost like you already got paid for it.  Could you be getting some other assistance that negates that credit?

partgypsy


://www.irs.gov/publications/p970/ch03.html#d0e3850
No Double Benefit Allowed
You cannot do any of the following:
• Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim a lifetime learning credit based on those same expenses.
• Claim a lifetime learning credit in the same year that you are claiming a tuition and fees deduction for the same student.
• Claim a lifetime learning credit and a Hope credit based on the same qualified education expenses.
• Claim a lifetime learning credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP). See Coordination With Hope and Lifetime Learning Credits in chapter 7 (Coverdell ESA) and chapter 8 (QTP).
• Claim a credit based on qualified education expenses paid with a tax-free scholarship, grant, or employer-provided educational assistance. See Adjustments to Qualified Education Expenses, later.
Adjustments to Qualified Education Expenses
If you pay qualified education expenses with certain tax-free funds, you cannot claim a credit for those amounts. You must reduce the qualified education expenses by the amount of any tax-free educational assistance and refund(s) you received.
Tax-free educational assistance.   This includes:
• The tax-free part of scholarships and fellowships (see chapter 1),
• Pell grants (see chapter 1),
• Employer-provided educational assistance (see chapter 11),
• Veterans' educational assistance (see chapter 1), and
• Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance.

Skippy

"The only things that stand between a person and what they want in life are the will to try it, and the faith to believe it's possible" Rich Devos

Skippy

"The only things that stand between a person and what they want in life are the will to try it, and the faith to believe it's possible" Rich Devos