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Taxes are wrong, too stressed and annoyed that i can't ignore it

Discussion in 'Employment, Education & Disability' started by littleoc, Mar 14, 2018.

  1. littleoc

    littleoc Making everywhere I go a better place Premium Member Donated

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    Hello :(

    I'm very stressed. I live in the United States, and it is tax season. I wasn't worried about it, because I'm still a dependent and just got out of university. Nothing to worry about, really.

    Until I saw what they did to my 1098T. It shows that I got more scholarships this year than I paid in tuition.

    Turns out the reason is because they filed my tuition payment from 2017 (Jan-March) as 2016, but didn't file my scholarships under the same year. They filed them under 2017.

    That year (2017), I PAID $10,000+ for tuition for three semesters. 4,000 per regular semester, and 2,500 for the summer that I went to Iceland, which I got no financial help or scholarships for.

    But they have it listed that I EARNED $10,000, which is taxable income somehow. I didn't earn anything. I paid what the scholarships didn't cover. The university even said that if I got more scholarships than just what covered the tuition, they would adjust so that I COULDN'T earn anything.

    This doesn't even include student loans. I don't have $10,000. Currently I have maybe 100.

    I have no idea what to do. I REALLY need to study for my comprehensive exams or I won't officially own my BA. I feel like I'm dying.


    I called the University and they insisted that they've done it this way for 40 years, but admitted that this is a common problem.

    f*ck
     
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  3. Zoogal

    Zoogal I'm a VIP

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    Call the IRS and ask them what to do.
     
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  4. littleoc

    littleoc Making everywhere I go a better place Premium Member Donated

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    I scheduled an appointment with H&R Block. Will that work?

    Today was the last day to file taxes for free, so I wish I would have known this was a problem earlier. My mom usually does my taxes without asking me, since I'm a dependent... this sucks
     
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  5. Zoogal

    Zoogal I'm a VIP

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    Honey no matter what it will be ok. I know it's scary but it will still be ok. H&R will be able to help you through what you are dealing with.
     
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  6. Fadeaway

    Fadeaway I'm a VIP Donated

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    Good luck getting a live person from the IRS on the phone this time of year. H&R block is the best way to go, and if one agent can't help, take it to a different one.
     
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  7. scout86

    scout86 I'm a VIP Premium Member Donated

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    H&R Block should be fine, although you might want to talk to someone with their own business, if they aren't helpful. A good tax person can do amazing things. H&R Block had the same relationship to the tax business that McDonald's has to the restaurant business.

    If the school is aware this is a common problem, perhaps the also know what the solution is?
     
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  8. Fadeaway

    Fadeaway I'm a VIP Donated

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    I have to admit I am baffled by scolorships being taxable since they don't count against you for SSI or food stamps.
     
  9. littleoc

    littleoc Making everywhere I go a better place Premium Member Donated

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    I tried, they just say it's a common problem but they told me to talk to a paid tax expert. I was originally going to have them filed for free so that's unfortunate (but better than losing $10,000?)

    @Fadeaway They usually aren't taxable, unless they're made into income? I'm not totally sure how it works though :(

    @ShikibuZ most likely (depending on what you're referencing)
     
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  10. scout86

    scout86 I'm a VIP Premium Member Donated

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    I can see how technically, they'd be income. But I'm going to guess that, normally, they'd be offset by the expense of going to school.

    If you had $10,000 in "income" you won't have to pay ALL of that in taxes, no matter how badly things go. But, if you're claimed as a dependent, you won't be able to take the personal exemption, which would eliminate most of that income.

    I had something like this happen once. Thought I was going to jail. An accountant solved the problem in minutes and got me a refund rather than a jail sentence. Those people are worth their weight in gold, if they're good at their jobs.

    Good luck! It's no fun having to worry about this kind of thing, but you'll probably be fine.
     
  11. littleoc

    littleoc Making everywhere I go a better place Premium Member Donated

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    I wanted to update anyone who likes hearing about things working out.

    I talked to a tax specialist like suggested, and she sorted out the issue and spoke to the university about what was going on. I got a refund (a small one, but much better than having to pay) and I don't owe anything.

    I thought maybe it would be nice to hear that to others too :)
     
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  12. Fadeaway

    Fadeaway I'm a VIP Donated

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    Yay! Thanks for the update!
     
    littleoc likes this.
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