Post # 1
I’ve been sick with the flu and have missed a lot of school. I’ve surpassed the number of days I’m allowed to miss. My teacher is a real stickler, and he’s already told us he will allow no excuses, and automatically drop anyone who has 3 or more absences.
FI is the one who does all of our taxes, paperwork, etc. I leave it up to him because he went to school for accounting. He hasn’t graduated yet, but he’s a semester shy of it. So, I trust him for obvious reasons, plus I’m clueless when it comes to that.
Last night he told me I have to go to class because he made tax write offs for me being a student.
Will we be audited? What happens then?
(Side note: I’m extremely sleep deprived, so please excuse any grammatical errors.)
Post # 3
You did pay for the classes (I’m assuming they won’t be refunded) so I don’t see a problem. I used to do taxes and I have never come across this but usually taxes only care about what you paid. Do you think you will be able to go back to school next semester?
You aren’t very likely to be audited for this. They usually audit for things that look strange or people missing things that should be on their taxes.
Post # 4
The chances of you actually being audited are so, so low. Something like claiming student status does not set off the “audit meter” for the IRS whatsoever.
And I agree with PP. You paid for the class, which is what matters. The tax credit is for paying for your education – the IRS doesn’t care if you actually go to class or not!
Post # 5
@MrsSaltWaterTaffy: I got federal student aid (FAFSA). I just got refunded a few days ago. Does this change things?
I never knew you could get in trouble for this. I knew a guy from high school who used to attend school just to get the money, then he’d drop out. Nothing ever happend to him and he would get around $1,000. Obviously he’s really crooked and I don’t condone this.
Post # 6
The IRS just cares about the costs going to a legit institution “in pursuit of a degree.” Since you paid or loaned for these classes out-of-pocket (I am assuming), you will be fine. You should have received a form called a 1098-T that lists your tuition expenditures for the tax year – your FI would have used that to determine what your tuition deduction or credit would be.
Post # 7
I also want to add I do not have any federal loans, or any loans for that matter.
Post # 8
Did you actually pay for the classes out of pocket at all? If it was all FAFSA money, that shouldn’t even be reported on your taxes since you were reimbursed for it.
Post # 9
@petalpetal: get a dr’s note? Stickler or not, if you have a medical reason, shouldnt they not be able to kick you out of class? I would look into that. We have a strict attendance policy as well (2 classes max) but shit happens sometimes. If you can prove you were for real sick, you should be able to sort it out!
Post # 10
@lalalyanne: +1 get a doctors note and get back to school ASAP. I wouldn’t be too concerned about the IRS aspect, but I would be very upset at the prospect of having wasted money on a class I wasn’t getting credit for and the time wasted, which presumably would impact my graduation date.
Post # 11
@petalpetal: Your tax credits are for the previous year. You can’t take credit for attending in 2014 on your 2013 taxes. Your 2013 taxes cover Spring 2013, Summer 2013, and Fall 2013. So it’s really non-issue.