Fillable Kentucky Education Tuition Tax Credit (Page 3 of 4) in pdf

Education Tuition Tax Credit—Instructions and Worksheet

Note: You cannot take a Kentucky Education Tuition Tax Credit if you are not eligible for the federal Hope or Lifetime

Learning Credits.

Purpose of Form—Use Form 8863–K to calculate and claim

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The student has not been convicted of a felony for

your education credits. The education credits are: the Hope

possessing or distributing a controlled substance.

Credit and the Lifetime Learning Credit. These credits are

Note: If a student does not meet all of the above qualiﬁ cations,

based on qualiﬁ ed education expenses paid to an eligible

you may be able to take the Lifetime Learning Credit for part

postsecondary educational institution located in Kentucky. If

or all of the student’s qualiﬁ ed education expenses.

you elected to claim the education credit for federal purposes

rather than the tuition and fees deduction, you must make that

Line 1, Columns A and B—Enter student’s name, Social

same election for Kentucky purposes. Caution: Requirements

Security number and the name and address of qualiﬁ ed

for the 2009 Kentucky Tuition Tax Credit are different from the

Kentucky institution.

federal education requirements due to Kentucky not adopting

the American Recovery and Reinvestment Act of 2009.

Line 1, Column C—Enter qualiﬁ ed expenses; do not enter

more than $2,400 for each student.

Qualified Education Expenses—Generally, qualified

education expenses are amounts paid in 2009 for tuition and

Line 1, Column D—Enter the amount from Column C or

fees required for the student’s enrollment or attendance at

$1,200, whichever is smaller.

an eligible educational institution. It does not matter whether

the expenses were paid in cash, by check, by credit card, or

Line 1, Column E—Add Column C and Column D.

with borrowed funds. See federal instructions for items not

included as qualiﬁ ed education expenses.

Line 1, Column F—Enter one-half of the amount in Column E.

Eligible Educational Institution located in Kentucky—An

Line 2—Add all amounts in Column F for all students to

eligible educational institution is generally any accredited

compute your tentative Hope credit. If you have expenses

public, nonproﬁ t, or private college, university, vocational

for more than two students, attach a list to Form 8863-K and

school, or other postsecondary institution. Also, the

list the total for all students on Line 2. If you are taking the

institution must be eligible to participate in a student aid

Lifetime Learning Credit for another student, go to Part III;

program administered by the Department of Education.

otherwise go to Part IV.

The institution must also be physically located in Kentucky

to qualify.

Part III—Lifetime Learning Credit—You may be able to

take 25% of the Lifetime Learning Credit that equals 20%

Part I, Qualifications—All questions in Part I must be

of qualiﬁ ed expenses paid, up to a maximum of $10,000

answered yes to be eligible for the Kentucky Education Tuition

of qualiﬁ ed expenses per return. The maximum amount of

Tax Credit.

Lifetime Learning Credit you can claim on your tax return for

the tax year is $2,000. For Kentucky, the Lifetime Learning

Part II, Hope Credit—You may be able to take a credit of up

Credit is then limited to 25% of the $2,000 for a maximum

to 25% of $1,800 for qualiﬁ ed education expenses paid for

allowed of $500 per return.

each student who qualiﬁ es for the Hope Credit. The Hope

Credit equals 100% of the ﬁ rst $1,200 and 50% of the next

Line 3, Column A–D—Enter student’s name, Social security

$1,200 of qualiﬁ ed expenses paid for each eligible student.

number, name and address of qualiﬁ ed Kentucky institution

For Kentucky, the credit is then limited to 25% for a maximum

and amount of qualiﬁ ed expenses.

amount allowed of $450 for each student who qualiﬁ ed. You

can take the Hope Credit for a student if all of the following

Line 4—Add all amounts in Column C for all students.

apply.

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As of the beginning of 2009, the student had not completed

Line 5—Enter the smaller of Line 4 or $10,000.

the ﬁ rst 2 years of postsecondary education (generally,

the freshman and sophomore years of college), as

Line 6—Multiply Line 5 by 20%. Do not enter more than

determined by the eligible educational institution. For

$2,000. This is your tentative Lifetime Learning Credit.

this purpose, do not include academic credit awarded

solely because of the student’s performance on

Line 7—Add Line 2 (tentative Hope Credit) and Line 6

proﬁ ciency exams.

(tentative Lifetime Learning Credit) to get your tentative

Kentucky Education Credits. Enter the amount on Line 7 and

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The student was enrolled in 2009 in a program that leads

on page 2, Line 8.

to a degree, certiﬁ cate, or other recognized educational

credential.

Part IV—Allowable Education Credits—

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The student was taking at least one–half the normal full-

Line 9—Line 13—You cannot take any Kentucky Education

time workload for his or her course of study for a least

Credits if your federal adjusted gross income (federal Form

one academic period beginning in 2009.

1040, Line 37 or 1040A, Line 21) exceeds $120,000 if married,

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The Hope Credit was not claimed for that student’s

ﬁ ling jointly or married, ﬁ ling separately on a combined

expenses in more than one prior tax year.

return ($60,000 if single). If you are ﬁ ling a separate return,

Kentucky Education Tuition Tax Credit Page 3

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