I’ve been doing my own taxes since I started working at 16. It isn’t that hard, just add up the numbers the form tells you to add and you’re done. But last year I did my friends taxes, too, and I’m afraid I ended up screwing her out of some money.
Basically, I thought tuition was a deduction that she wouldn’t have to pay taxes on. When I did her taxes, she forgot to bring the 1098 form over, but I told her since she only paid around 1500 dollars in tuition, that the tax return difference would only be like 50 bucks, and that it wasn’t worth it to drive 45 minutes back to her house to get it.
So, I did her taxes this year, and I realized that tuition is a credit. Meaning that if you spent enough on tuition, and make under a certain amount, that you don’t have to pay federal taxes at all, so her return is now around 2000 dollars instead of 700 like it was last year.
Anyway, long story short, is there any way I can get the IRS to let her claim that money at this late date? I know if the IRS accidentally gave me a 5000 dollar return instead of the 2000 they owe me, they’d be well within their rights to ask for the difference back next year or next decade. Can I do the same?