Get the free Form 8863

This form is used to claim education credits for qualified education expenses, including the American Opportunity Credit and the Hope Credit. It provides instructions and guidelines on eligibility

How to fill out form 8863

How to fill out Form 8863

1. Gather necessary information including your educational expenses and student details.
2. Download Form 8863 from the IRS website or obtain it from a tax preparation service.
3. Provide your name, Social Security number, and tax year at the top of the form.
4. Complete Part I: Education Credits for your qualified education expenses.
5. Fill out Part II: Information on Students by providing details for each student.
6. Calculate the amount of your education credits based on the data provided.
7. Double-check all entries for accuracy.
8. Submit Form 8863 with your federal tax return.

Who needs Form 8863?

1. Students or parents of students attending eligible higher education institutions.
2. Taxpayers claiming education credits such as the American Opportunity Credit or Lifetime Learning Credit.
3. Individuals who incurred qualified tuition and related expenses during the tax year.

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 the Education Credits form used to claim the American Opportunity Credit and the Lifetime Learning Credit for qualified education expenses paid for eligible students.

Who is required to file Form 8863?

Taxpayers who wish to claim the American Opportunity Credit or the Lifetime Learning Credit must file Form 8863.

How to fill out Form 8863?

To fill out Form 8863, you will need to provide information about the student, qualified expenses, and calculate the credits based on eligibility criteria established by the IRS.

What is the purpose of Form 8863?

The purpose of Form 8863 is to allow taxpayers to claim education tax credits that can help reduce their tax liability for qualified education expenses.

What information must be reported on Form 8863?

Information that must be reported on Form 8863 includes the student's name, Social Security number, educational institution details, amounts paid toward qualified tuition and related expenses, and any previous credits claimed.