What is the IRS 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. The American Opportunity Credit, part of which may be refundable. The Lifetime Learning Credit, which is nonrefundable.
Do you have to file Form 8863?
If you plan on claiming one of the IRS educational tax credits, be sure to fill out a Form 8863 and attach it to your tax return. These credits can provide a dollar-for-dollar reduction in the amount of tax you owe at the end of the year for the costs you incur to attend school.
How to fill out the 8863 form for pocketsense?
Use Form 1098-T to fill in this section. Answer questions 23 to 26. Fill out the credit section for the one you want to claim. Fill out lines 27 through 30 for the American Opportunity Credit or line 31 for the Lifetime Learning Credit.
How to fill out the 8863 form for Lifetime Learning Credit?
Use Form 8863 to find out how much you qualify for. Part 3 on Form 8863 must be completed by all individuals seeking to claim either the Lifetime Learning Credit or the American Opportunity Credit. Part 2 and Part 3 of Form 8863 relate specifically to the individual credits you are claiming. Ascertain that you are eligible to file for the credit.
Where does nonrefundable credit go on form 8863?
The amount you get on line 13 of the worksheet goes on Form 8863 line 19 and is the amount of nonrefundable credit you will receive — the amount that will reduce the taxes you owe. Read Publication 970
When to leave line 31 blank on IRS Form 8863?
If you answer the question from line 27 to 30, then you are expected to leave line 31 as blank. Any full-time student under 24 and depends on their parent to pay their expense can claim the credit. Parents with more than one child who are eligible for the credit can claim for each one of them.