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

Line 1

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

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

academic period beginning in 2009.

qualifies for and for whom you elect to take the American

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The Hope credit was not claimed for that student’s expenses

opportunity credit.

in more than one prior tax year.

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

The student has not been convicted of a felony for

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

possessing or distributing a controlled substance.

and attach a statement with the required information for each

In addition, you must meet both of the following conditions.

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

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At least one student for whom you are claiming this credit

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

attended an eligible educational institution in a Midwestern

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

disaster area in 2009.

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expenses remaining after reduction by certain tax-free

You are not claiming the American opportunity credit for any

educational assistance and refunds of qualified educational

student in 2009.

expenses, as explained under Qualified Education Expenses on

page 2. To get the credit for 2009, the expenses must have

If all of the above conditions are not met, you may be

TIP

been paid for the student in 2009 for academic periods

able to take the lifetime learning credit for part or all of a

beginning after 2008 but before April 1, 2010, as explained

student’s qualified education expenses instead.

earlier on this page under Prepaid Expenses. If the student’s

Line 3

expenses are more than $4,000, enter $4,000. You can use the

worksheet below to figure the correct amount to enter in column

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

(c).

qualifies for and for whom you elect to take the Hope credit.

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

Qualified Education Expenses Worksheet

more than three students, enter “See attached” next to line 3

for Part I, Column (c)

and attach a statement with the required information for each

additional student. Include the amounts from line 3, column (f),

(Do a separate worksheet for each student)

for all students in the total you enter on line 4.

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

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

expenses remaining after reduction by certain tax-free

2. Less adjustments:

educational assistance and refunds, as explained under

a. Tax-free educational

Qualified Education Expenses on page 2. The expenses must

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

have been paid for the student in 2009 for academic periods

b. Refunds of qualified

beginning after 2008 but before April 1, 2010, as explained

under Prepaid Expenses on page 3. If the student’s expenses

education expenses . . . . .

are more than $2,400 ($4,800 if a student in a Midwestern

c. Other adjustments (see

disaster area), enter $2,400 ($4,800 if a student in a

Pub. 970, chapter 2) . . . . .

Midwestern disaster area). You can use the worksheet below to

3. Total adjustments (add lines 2a – 2c) . . . . . .

figure the correct amount to enter in column (c).

4. Qualified education expenses. Subtract line 3

Qualified Education Expenses Worksheet

from line 1 and enter here. Also enter (but not

for Part II, Column (c)

more than $4,000) on Form 8863, Part I,

column (c) . . . . . . . . . . . . . . . . . . . . . . . . .

(Do a separate worksheet for each student)

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

Part II

2. Less adjustments:

Hope Credit

a. Tax-free educational

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

To claim the Hope credit in Part II, you must be claiming

b. Refunds of qualified

this credit for at least one student attending an eligible

education expenses . . . . .

educational institution in a Midwestern disaster area and

CAUTION

c. Other adjustments (see

choose not to claim the American opportunity credit for any

student in 2009.

Pub. 970, chapter 3) . . . . .

You may be able to take a credit of up to $1,800 ($3,600 if a

3. Total adjustments (add lines 2a – 2c) . . . . . .

student in a Midwestern disaster area) for qualified education

4. Qualified education expenses. Subtract line 3

expenses (defined earlier) paid for each student who qualifies.

from line 1 and enter here. Also enter (but not

The Hope credit equals 100% of the first $1,200 ($2,400 if a

more than $2,400*) on Form 8863, Part II,

student in a Midwestern disaster area) and 50% of the next

column (c) . . . . . . . . . . . . . . . . . . . . . . . . .

$1,200 ($2,400 if a student in a Midwestern disaster area) of

qualified expenses paid for each eligible student. This credit is

* Do not enter more than $4,800 for a student who attended an

eligible educational institution in a Midwestern disaster area.

not refundable. The amount of your credit for 2009 is gradually

reduced (phased out) if your MAGI is between $50,000 and

$60,000 ($100,000 and $120,000 if you file a joint return). You

Part III

cannot claim a credit if your MAGI is $60,000 or more

Lifetime Learning Credit

($120,000 or more if you file a joint return).

You can take the Hope credit for a student if all of the

The lifetime learning credit equals 20% of qualified expenses

following apply.

paid, up to a maximum of $10,000 of qualified expenses per

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

return. Therefore, the maximum lifetime learning credit you can

the first 2 years of postsecondary education (generally, the

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

freshman and sophomore years of college), as determined by

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

the eligible educational institution. For this purpose, do not

amount of your credit for 2009 is gradually reduced (phased

include academic credit awarded solely because of the

out) if your MAGI is between $50,000 and $60,000 ($100,000

student’s performance on proficiency examinations.

and $120,000 if you file a joint return). You cannot claim a credit

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The student was enrolled in 2009 in a program that leads to a

if your MAGI is $60,000 or more ($120,000 or more if you file a

degree, certificate, or other recognized educational credential.

joint return).

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Instructions For Form 8863 - Education Credits (American Opportunity, Hope, And Lifetime Learning Credits) - 2009 Page 4

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