Looking for a Form 8863 Templates? Download it for free!

Eligible Educational Institution

Expenses. If the student’s expenses are more than $4,000,

enter $4,000. You can use the worksheet below to figure the

An eligible educational institution is generally any accredited

correct amount to enter in column (c).

public, nonprofit, or proprietary (private) college, university,

vocational school, or other postsecondary institution. Also, the

Qualified Education Expenses Worksheet

institution must be eligible to participate in a student aid

for Part I, Line 1, Column (c)

program administered by the Department of Education. Virtually

See Qualified Education Expenses, earlier, before completing.

all accredited postsecondary institutions meet this definition.

(Do a separate worksheet for each student)

Additional Information

See Pub. 970, chapters 2 and 3, for more information about

1. Total qualified education expenses . . . . . . . .

these credits.

2. Less adjustments:

a. Tax-free educational

Specific Instructions

assistance . . . . . . . . . . . .

b. Refunds of qualified

Part I

education expenses paid in

2011 . . . . . . . . . . . . . . . .

American Opportunity Credit

3. Total adjustments (add lines 2a and 2b) . . . . .

You may be able to take a credit of up to $2,500 for adjusted

qualified education expenses (defined earlier) paid for each

4. Adjusted qualified education expenses.

student who qualifies for the American opportunity credit. This

Subtract line 3 from line 1. If zero or less, enter

credit equals 100% of the first $2,000 and 25% of the next

-0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,000 of qualified expenses paid for each eligible student. The

5. Enter the smaller of line 4 or $4,000 here and

amount of your credit for 2011 is gradually reduced (phased

on Form 8863, Part I, column (c) . . . . . . . . . .

out) if your MAGI is between $80,000 and $90,000 ($160,000

and $180,000 if you file a joint return). You cannot claim a credit

if your MAGI is $90,000 or more ($180,000 or more if you file a

Part II

joint return).

Student qualifications. Generally, you can take the American

Lifetime Learning Credit

opportunity credit for a student if all of the following apply.

•

The lifetime learning credit equals 20% of adjusted qualified

As of the beginning of 2011, the student had not completed

education expenses (defined earlier), up to a maximum of

the first 4 years of postsecondary education (generally, the

$10,000 of adjusted qualified education expenses per return.

freshman through senior years of college), as determined by

Therefore, the maximum lifetime learning credit you can claim

the eligible educational institution. For this purpose, do not

on your return for the year is $2,000, regardless of the number

include academic credit awarded solely because of the

of students for whom you are claiming the credit. The amount of

student’s performance on proficiency examinations.

•

your credit for 2011 is gradually reduced (phased out) if your

The student was enrolled in 2011 in a program that leads to a

MAGI is between $51,000 and $61,000 ($102,000 and

degree, certificate, or other recognized educational credential.

•

$122,000 if you file a joint return). You cannot claim a credit if

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

your MAGI is $61,000 or more ($122,000 or more if you file a

workload for his or her course of study for at least one

joint return).

academic period beginning in 2011.

•

As of the end of 2011, the student had not been convicted of

You cannot claim the lifetime learning credit for any

a felony for possessing or distributing a controlled substance.

student for whom you are claiming the American

If any of the above conditions are not met for any

opportunity credit in the same tax year.

CAUTION

student, you cannot take the American opportunity credit

TIP

Line 3

for that student. You may be able to take the lifetime

learning credit for part or all of that student’s qualified education

Complete columns (a) through (c) on line 3 for each student for

expenses instead.

whom you are taking the lifetime learning credit.

Line 1

More than three students. If you are taking the lifetime

learning credit for more than three students, enter “See

Complete columns (a) through (f) on line 1 for each student who

attached” next to line 3 and attach a statement with the required

qualifies for and for whom you elect to take the American

information for each additional student. Include the amounts

opportunity credit.

from line 3, column (c), for all students in the total you enter on

More than three students. If you are taking this credit for

line 4.

more than three students, enter “See attached” next to line 1

and attach a statement with the required information for each

Column (c). For each student, enter the amount of adjusted

additional student. Include the amounts from line 1, column (f),

qualified education expenses (defined earlier). The expenses

for all students in the total you enter on line 2.

must have been paid for the student in 2011 for academic

Column (c). For each student, enter the amount of adjusted

periods beginning after 2010 but before April 1, 2012, as

qualified education expenses (defined earlier). To be allowed

explained earlier under Prepaid Expenses. You can use the

the credit for 2011, the expenses must have been paid for the

Qualified Education Expenses Worksheet for Part II, Line 3,

student in 2011 for academic periods beginning after 2010 but

Column (c), later, to figure the correct amount to enter in

before April 1, 2012, as explained earlier under Prepaid

column (c).

-3-

Instructions for Form 8863 (2011)

Instructions For Form 8863 - Education Credits (American Opportunity And Lifetime Learning Credits) - 2011 Page 3

Related Articles

Related forms

Related Categories