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Employee
May 31, 2019
Question

In the past, I have answered yes to having a drug conviction. Now my record is sealed, can I answer no to being a felon?

  • May 31, 2019
  • 2 replies
  • 0 views
I feel like I should be able to answer no now.  Since I previously answered yes I don't want my taxes to be in limbo for months.

2 replies

Employee
June 1, 2019

First of all, answering "yes" should not hold up your tax return, that information is only used to determine eligibility for the American Opportunity tuition credit.  If you check yes, then turbotax will not request that credit.  (There are other college credits that don't have the drug conviction rule so you will still be eligible for them.)  The fact that you checked "yes" does not actually get reported to the IRS, so any delays in past refund processing was due to something else.

Second, there is a difference between "sealed" and "expunged," although some states may use different terminology.  Sealed generally means hidden from public view.  Expunged means it is treated as though it never happened.

While I can not find an authoritative answer, the gestalt of all the different things I research is that if your record was sealed, then you were still convicted and you should answer yes, and then you are not eligible for the credit.  But if the conviction was expunged, then you can answer no.  You may have to check with your state law or your attorney to confirm whether you got one or the other.

Employee
June 1, 2019
This helps a lot.  I actually meant expunged.
Employee
June 1, 2019

If you referring to the questions in TurboTax regarding education credits, then the question pertains to eligibility for the American Opportunity Credit and Lifetime Learning Credit.

If you were convicted of a drug related felony on or before December 31, 2015, then you should answer yes.

If you were convicted of a drug related felony, you would not be eligible for the American Opportunity Credit but you would be eligible for the Lifetime Learning Credit as long as you meet the other qualifications.

You can find out more about each education credit at the link below: https://apps.irs.gov/app/vita/content/globalmedia/education_credits_4012.pdf

If that does not answer your questions, please let me know.

Employee
June 1, 2019
I guess I should have been a little more clear.  I have actually  expunged my felony.