Archive for October 20, 2011

‘Education tax credit mistakenly claimed by millions, report says’

From the Washington Post:

Millions of American taxpayers may have erroneously claimed an education tax credit last year that is designed to provide relief as part of the Obama administration’s economic stimulus program, according to a new federal watchdog report disputed by the Internal Revenue Service.

As many as 2.1 million taxpayers may have erroneously claimed a total of $3.2 billion by taking advantage of the American Opportunity Tax Credit, which provides up to $2,500 in relief for college students paying tuition and related expenses. The tax credit, once known as the Hope Scholarship Credit, was expanded as part of the 2009 economic stimulus program.

According to a report by the Treasury Inspector General for Tax Administration set for release Thursday, 1.7 million taxpayers received $2.6 billion in education credits that appear to be erroneous based on IRS records.

Read more here.