So my grandmother set up a mutual fund for me a long time ago to pay for college. For the last four years I've been taking money out of the fund to help pay for school. Last year was the first year that I filed a tax return and clearly I either a.) fucked up hardcore reporting my income correctly on turbo tax or b.) incorrectly assumed that any disbursement from the account wouldn't been seen as income and therefore didn't include them on the tax return. I got a letter in the mail from the IRS with a "corrected" list of what I should have included on my tax return (which was around 14k that I took out of the account) and they have told me that I now owe 1700$ in back taxes and must notify them by the end of April whether or not I accept this condition. Am I now royally fucked? I've been using this fund for living expenses this past year as well and I assume I'll owe a similar amount this year as well. I have about $3400 left in the fund and essentially no extra money since what I do have now is allocated for living expenses until the end of April.
Edit: Sorry all I probably should have specified as well that I am now the sole custodian (I believe is the right term) of the account of of this school year (I think I did all of the paperwork in September)
Submitted March 11, 2017 at 05:13PM by holyfimfed http://ift.tt/2nbl76E
