H&R Block repeatedly messed up my 1098-T filing for grad school - what are my options now?

I've been going to H&R Block for my tax filing throughout my graduate school years because it was relatively affordable at $95 per session and I always got some money back. This year was totally different - they charged me $190 and said I'm getting absolutely nothing back! When I questioned this, the preparer told me there's no record of any 1098-T forms being filed on my previous returns. This makes ZERO sense because I literally brought physical copies of my 1098-T forms every single time I went in for my appointments. The preparer said they could "fix" my previous returns but warned I'd probably owe around $450-500 for EACH year they didn't properly file my education expenses. I'm furious and definitely not going back to them. What's my best course of action here? Should I just wait until the IRS potentially audits me and deal with it then? Or should I be proactive and contact the IRS myself to set up some kind of payment plan before things get worse? I'm a recent grad and definitely don't have thousands sitting around to pay for someone else's mistake.

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18 comments

Norah Quay

•8M

This is unfortunately a common issue, and I understand your frustration. As someone who's helped many graduate students with their taxes, I can offer some perspective. First, you should know that the IRS generally has a 3-year window to audit returns. If your oldest misreported return is beyond that timeframe, it may not be an issue anymore. However, for the more recent returns, you have options. You can file amended returns (Form 1040-X) yourself for the years where your 1098-T wasn't properly reported. This would allow you to claim education credits you might have missed. While you might end up owing some tax if you incorrectly received refunds, you might also qualify for education credits like the Lifetime Learning Credit that could offset much of this. Before doing anything, gather all your 1098-Ts and previous tax returns. You'll need these to determine exactly what was reported and what wasn't.

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Norah Quay

•8M

You can obtain copies of your previous returns from the IRS by requesting a "Tax Return Transcript" through the IRS website, by mail using Form 4506-T, or by calling the IRS directly. These are free and typically available for the past three tax years. The Lifetime Learning Credit can be worth up to $2,000 per tax return (20% of the first $10,000 in qualified education expenses). Since you were in graduate school, your tuition and required fees would generally qualify. This credit could significantly reduce or even eliminate what you might owe from the amendments, depending on your education expenses and income level during those years.

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Leo McDonald

•8M

After dealing with a similar situation (tax preparer ignored my education docs), I tried taxr.ai and it was super helpful. I uploaded pics of my old 1098-Ts and previous returns and their system found like $1800 in credits I missed. The site (https://taxr.ai) has this document analyzer that specifically checks for education credit eligibility based on your 1098-T info. I was worried about amending multiple years too, but their tool walked me through exactly what forms I needed and how much I could expect to get back vs. owe for each year. Saved me from having to figure out all the education credit rules myself.

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Leo McDonald

•8M

You don't absolutely need your original returns, but having them makes things more accurate. If you don't have them, the site recommends requesting your tax transcripts from the IRS first, which shows most of the important info from your original returns. They don't file the amended returns for you, but they give you all the calculations and a detailed report showing exactly what to put on each line of the 1040-X form. They also provide a custom cover letter explaining your amendments to the IRS if you want it. I found it much easier than trying to figure out all the education credit rules myself.

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Jessica Nolan

•8M

Just wanted to follow up - I ended up trying taxr.ai after seeing this thread. It was super helpful for my situation! I had 3 years of missing education credits from when I was getting my MBA. The document analyzer found I was eligible for the Lifetime Learning Credit for all three years. I was actually owed money rather than owing the IRS! Already got my first amended return processed and received a refund of $1,242. The other two amendments are still being processed. The step-by-step instructions made it pretty straightforward to fill out the 1040-X forms correctly. Definitely recommend if you're dealing with education credit issues.

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Sebastián Stevens

•8M

If you're planning to contact the IRS about this, good luck! I spent WEEKS trying to reach someone about a similar education credit issue. Finally discovered Claimyr (https://claimyr.com) after seeing their demo video (https://youtu.be/_kiP6q8DX5c) - they got me connected to an actual IRS agent in about 15 minutes when I'd been trying for days. The IRS agent was surprisingly helpful once I explained my situation with the education credits. They walked me through exactly what forms I needed to file and even put notes on my account about the situation. Saved me from potentially getting hit with bigger penalties later.

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Sebastián Stevens

•8M

It works by using their system to navigate the IRS phone menu and wait in the queue for you. When an agent is about to pick up, you get a call connecting you directly to them. It's basically like having someone wait on hold for you. I was totally skeptical too! But it's not a filing service - they don't do anything with your taxes or take your tax info. They literally just get you past the impossible phone system so you can talk to a real agent. The IRS agent I spoke with helped me understand exactly what I needed to do with my education credits and explained the amendment process. I had to do the actual filing myself, but at least I knew exactly what to do after talking to them.

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KingKongZilla

•8M

I have to apologize for my skeptical comment above. After struggling for THREE DAYS trying to reach the IRS myself about some education credits issues, I broke down and tried Claimyr. I was connected to an IRS agent in about 20 minutes. The agent confirmed I could amend returns from 2022 and 2023 to claim education credits I missed and explained exactly what documentation I needed to include. They also told me I shouldn't expect any penalties since I was amending to claim credits I was entitled to, which was a huge relief. Definitely worth it just to get clear information directly from the IRS instead of stressing about what might happen.

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Rebecca Johnston

•8M

TurboTax does charge separately for each tax year you amend, unfortunately. I think I paid around $60 per year to file the amendments. You can't directly import from H&R Block to TurboTax, so I had to manually enter the info from my original returns, then add the 1098-T information. It took me about 2 hours per return, but was pretty straightforward. The software calculated the education credits automatically once I entered my 1098-T info. One tip: make sure you have your AGI from the original returns as the IRS uses this to verify your amended return.

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