Friday, June 14

For Once It Wasn't My Fault

Yesterday morning I sat down to resolve the issue I had with our IRS Federal refund for this year. I had gone through most of it a couple weeks ago, though had not been able to locate the problem. As I read through the instructions for the form for the Education Credit(s), I think I found the error. It is a three-part form, where Part III needs to be completed for each student. Turns out, it appears there are two types of credit available for Education. The first is based up to 25%, is refundable, so you get actual cash back. The second is up to 20% and is non-refundable, and is claimed more as a credit break on the taxes themselves. However, you cannot claim both for one student. Now, on the form 8863, there is a Part I & II that do not specify which is for which credit. So the Wife unknowingly completed both parts, and entered both figures on the indicated lines of the 1040. Can't claim both. So the first one they came across (the Part II on that is non-refundable) they processed, then kicked out the cash-back one, indicated both were incorrect (can't claim both on same student) and sent out the letter. I will need to redo part of the 1040, twice, to determine if they gave any credit at all, or just dumped both. Then I will need to find out how much may be owed to us still, and contact them about how I go about correcting it. Fun.

It's Friday and the only thing I have to look forward to is working tonight. hope it is busier than the past few Fridays. Tomorrow they have the UFC pay-per-view fight,and usually that will bring a crowd.

I am off to do some little things.


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