This tax form allows eligible taxpayers to reduce their tax liability by claiming credits for qualified education expenses they paid during the tax year.
Form 8863 is used to claim one of two main education credits: the American Opportunity Credit and the Lifetime Learning Credit.
American Opportunity Credit: Available for eligible students pursuing a degree or other recognized educational credential. It provides a credit of up to $2,500 per student per year for the first four years of post-secondary education.
Lifetime Learning Credit: Available for both undergraduate and graduate students, as well as those taking courses to acquire or improve job skills. It provides a credit of up to $2,000 per tax return, regardless of the number of students.
To claim either credit, you must meet certain eligibility requirements. These include:
- Being enrolled at an eligible educational institution.
- Being in a degree, certificate, or other recognized educational credential program (for the American Opportunity Credit).
- Having paid qualified education expenses, such as tuition, fees, and required course materials.
- Meeting income limits and other criteria specified by the IRS
You donʻt have to worry about filling out this form when you file with us. Just be sure to include your school information under the "Credits and deductions" section of the filing flow so we can determine which credits you are eligible for.