Get the free Form 8863

This form is used to determine eligibility for and calculate the American Opportunity and Lifetime Learning credits for education expenses.

How to fill out form 8863

How to fill out Form 8863

1. Ensure you have your tax return and all necessary financial documents ready.
2. Obtain Form 8863 from the IRS website or your tax software.
3. Enter your personal information at the top of the form, including your name, Social Security number, and the tax year.
4. Complete Part I to claim the American Opportunity Credit, filling in the required information for each eligible student.
5. If claiming the Lifetime Learning Credit, fill out Part II with the necessary information.
6. Transfer any credits from Form 8863 to your Form 1040 or 1040A.
7. Review the form for accuracy and attach it to your tax return.

Who needs Form 8863?

1. Students or parents of students who are enrolled in higher education.
2. Individuals seeking to claim the American Opportunity Credit or Lifetime Learning Credit.
3. Taxpayers looking to reduce their tax liability through education-related expenses.

People Also Ask about

What is tax form 8863?

Use Form 8863 to figure and claim your education credits, which are based on qualified education expenses paid to an eligible postsecondary educational institution. There are two education credits. The American Opportunity Credit, part of which may be refundable. The Lifetime Learning Credit, which is nonrefundable.

What happens if I don't have a 1098-T?

If you, your spouse, or your dependent had education expenses and did not receive Form 1098-T, you may need to still report the amounts on the return. If your expenses are more than your scholarships, fellowships, and grants, you may qualify for an education credit.

Who needs to fill out form 8863?

Claiming education credits on your U.S. tax return If you're a student hoping to take advantage of one of the IRS' education tax credits you'll have to file Form 8863 with your tax return, and there are a few things you should know before you begin.

Is form 8863 the same as 1098 T?

IRS Form 8863 Instructions This document is usually provided by the school and shows the amount billed or received for the given year. Be mindful that the amount displayed on the Form 1098-T might not be the same number that you claim on your Form 8863.

What is Form 1098-T used for?

The 1098-T form is the Tuition Statement that your college or career school uses to report qualified tuition and related education expenses to you and the IRS. You or your parent/guardian may be able to claim these expenses as education related tax credits.

Is form 8863 the same as Schedule 3?

The American Opportunity Credit is calculated on Form 8863, Education Credits. The total credit amount goes to Form 1040. The total credits are carried to Schedule 3 then Form 1040 for the nonrefundable portion of the credit and Form 1040 for the refundable portion of the credit.

Should I claim the American Opportunity Credit or the Lifetime Learning Credit?

Unfortunately, only one credit can be claimed for each student on your income tax return. Also, only one Lifetime Learning Credit can be claimed on your tax return each year. But if you qualify, the American Tax Opportunity Credit is generally more valuable than the Lifetime Learning Credit.

Can I claim the education credit without a 1098-T?

If you did not receive a Form 1098-T because tuition was paid entirely with scholarships or financial aid, you can still claim the American Opportunity Tax Credit. Be sure to keep records that show you were enrolled at an eligible educational institution and the amount of paid for qualified related expenses.

For pdfFiller’s FAQs

What is Form 8863?

Form 8863 is a tax form used in the United States to claim the American Opportunity Credit and the Lifetime Learning Credit, which provide tax benefits for higher education expenses.

Who is required to file Form 8863?

Individuals who are claiming the American Opportunity Credit or Lifetime Learning Credit for qualified education expenses must file Form 8863 as part of their federal tax return.

How to fill out Form 8863?

To fill out Form 8863, you need to complete the sections that ask for information about the student, the qualified education expenses, and any credits being claimed. Ensure all necessary details are accurate and supported by relevant documentation.

What is the purpose of Form 8863?

The purpose of Form 8863 is to allow taxpayers to claim education credits that can reduce their overall tax liability based on the costs incurred for higher education.

What information must be reported on Form 8863?

Form 8863 requires information such as the taxpayer's and student's details, qualified education expenses paid, the type of education credit being claimed, and any other necessary qualifications for the credits.