Instructions for IRS Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits)

IRS Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits)

This document contains official instructions for IRS Form 8863 , Education Credits (American Opportunity and Lifetime Learning Credits) - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8863 is available for download through this link.

FAQ

Q: What is IRS Form 8863?A: IRS Form 8863 is a form used to claim education credits, specifically the American Opportunity Credit and the Lifetime Learning Credit.

Q: What are education credits?A: Education credits are tax benefits that can help reduce the amount of tax you owe. They are based on qualified education expenses you paid for yourself, your spouse, or a dependent.

Q: What is the American Opportunity Credit?A: The American Opportunity Credit is a credit that can be claimed for qualified education expenses paid for eligible students in the first four years of post-secondary education.

Q: What is the Lifetime Learning Credit?A: The Lifetime Learning Credit is a credit that can be claimed for qualified education expenses paid for eligible students pursuing higher education, including undergraduate, graduate, and professional degrees.

Q: Who is eligible to claim education credits?A: You may be eligible to claim education credits if you, your spouse, or a dependent incurred qualified education expenses at an eligible educational institution.

Q: What are qualified education expenses?A: Qualified education expenses include tuition, fees, and other related expenses required for enrollment or attendance at an eligible educational institution.

Q: What is an eligible educational institution?A: An eligible educational institution is typically an accredited college, university, vocational school, or other post-secondary educational institution.

Q: How do I claim education credits with Form 8863?A: To claim education credits, you need to complete IRS Form 8863 and attach it to your tax return. You will need to provide information about the eligible student and the qualified education expenses paid.

Q: Are there income limits for claiming education credits?A: Yes, there are income limits for claiming education credits. The credits phase out for taxpayers with modified adjusted gross income (MAGI) above certain thresholds.

Q: Can I claim both the American Opportunity Credit and the Lifetime Learning Credit?A: No, you cannot claim both the American Opportunity Credit and the Lifetime Learning Credit for the same student in the same year. You can choose the credit that will provide the greater tax benefit.

Q: What documentation do I need to support my education credits claim?A: You should keep records and documentation of your qualified education expenses, such as tuition statements or bills, to support your education credits claim.

Q: Can I claim education credits if I received scholarships or grants?A: Yes, you can still claim education credits if you received scholarships or grants. However, you must reduce your qualified education expenses by the amount of any tax-free educational assistance you received.

Q: When is the deadline to file Form 8863?A: The deadline to file Form 8863 is the same as the regular tax filing deadline, which is usually April 15th. However, the deadline may be extended if you file for an extension on your tax return.