💡IRS Form 8863 is used to claim education credits for college expenses.
🎓The American Opportunity tax credit is available for the first four years of post-secondary education.
📚The lifetime learning credit can be claimed for other educational opportunities.
💰The American Opportunity tax credit is refundable, while the lifetime learning credit is non-refundable.
📝Completing IRS Form 8863 requires providing information about the student, educational institution, and qualified education expenses.
Who can claim education credits using IRS Form 8863?
—Taxpayers who have paid qualified education expenses for themselves, their spouse, or their dependents can claim education credits using IRS Form 8863.
What are qualified education expenses?
—Qualified education expenses include tuition, fees, and course materials required for enrollment or attendance at an eligible educational institution.
Can I claim both the American Opportunity tax credit and the lifetime learning credit?
—No, you cannot claim both credits for the same student in the same year. You must choose between the two credits based on your eligibility and the qualifications of the student.
Are there income limitations for claiming education credits?
—Yes, there are income limitations for claiming education credits. These limitations determine your eligibility and the amount of credit you can claim.
What documentation do I need to complete IRS Form 8863?
—You will need information such as the student's name, Social Security number, and Form 1098-T from the educational institution. You should also keep records of your qualified education expenses for reference.
00:00IRS Form 8863 is used to claim education credits for college expenses.
00:14The American Opportunity tax credit is available for the first four years of post-secondary education.
00:29The lifetime learning credit can be claimed for other educational opportunities.
01:03The American Opportunity tax credit is refundable, while the lifetime learning credit is non-refundable.
01:54Completing IRS Form 8863 requires providing information about the student, educational institution, and qualified education expenses.
