Instructions for 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.

FAQ

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

Q: What are education credits?
A: Education credits are tax credits that can help individuals offset the cost of higher education expenses.

Q: What is the American Opportunity Credit?
A: The American Opportunity Credit is a tax credit that provides financial assistance for eligible education expenses during the first four years of postsecondary education.

Q: What is the Lifetime Learning Credit?
A: The Lifetime Learning Credit is a tax credit that provides financial assistance for eligible education expenses incurred by individuals who are taking courses to acquire or improve job skills.

Q: Who is eligible to claim education credits?
A: Eligibility for education credits depends on various factors, such as the student's enrollment status, the type of educational institution, and the amount of qualified expenses paid.

Q: What expenses qualify for education credits?
A: Qualified expenses include tuition, fees, and required course materials. Certain expenses, such as room and board or transportation costs, do not qualify.

Q: When is the deadline for filing IRS Form 8863?
A: The deadline for filing IRS Form 8863 is usually the same as the deadline for filing your federal income tax return, which is typically April 15th.

Q: Can I claim both the American Opportunity Credit and the Lifetime Learning Credit?
A: No, you cannot claim both credits for the same student in the same year. You must choose one credit based on your eligibility.

Q: Are education credits refundable?
A: The American Opportunity Credit is partially refundable, meaning you may be eligible to receive a refund even if you don't owe any taxes. The Lifetime Learning Credit is non-refundable.

Q: Is there an income limit for claiming education credits?
A: Yes, there are income limits for claiming education credits. The specific income limits depend on the tax year and filing status.

Q: What supporting documents do I need to include with Form 8863?
A: You may need to include documentation such as Form 1098-T from the educational institution, receipts for qualified expenses, and any other relevant records.