The Treasury Inspector General for Tax Administration yesterday released Billions of Dollars in Education Credits Appear to Be Erroneous (2011-41-083):
[F]rom January 1 through May 28, 2010. TIGTA identified 2.1 million taxpayers receiving $3.2 billion in education credits that appear to be erroneous, and at least 1.1 million (52%) had tax returns prepared by a paid tax return preparer.
- 1.7 million taxpayers received $2.6 billion in erroneous education credits.
- 370,924 individuals were claimed as students but were not eligible for education credits because they did not attend the required amouint of time and/or were post graduate students. This resulted in an estimated $550 million in errorneous education credits.
- 63,713 taxpayers errorneously received $884 million in education credits for students claimed as a dependent or spouse on another taxpayer’s tax return.
- 250 prisoners erroneously received $255,879 in education credits.
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