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For students in Midwestern disaster areas, the rate is

You do not qualify for a refund if 1, 2, and 3 below apply to

modified to 40% of qualified expenses paid, with a maximum

you.

lifetime learning credit allowed on your return of $4,000. If you

are claiming a lifetime learning credit for both students in

1. You were:

Midwestern disaster areas and other students, the qualified

a. Under age 18 at the end of 2009, or

education expenses taken into account in Part III for other

b. Age 18 at the end of 2009 and your earned income

students cannot exceed $10,000 reduced by the qualified

(defined below) was less than one-half of your support

education expenses of students in the Midwestern disaster

(defined below), or

areas.

c. A full-time student over age 18 and under age 24 at the

You cannot claim the lifetime learning credit for any

end of 2009 and your earned income (defined below) was

student for whom you are claiming the American

less than one-half of your support (defined below).

opportunity or the Hope credit in the same tax year.

2. At least one of your parents was alive at the end of 2009.

CAUTION

3. You are not filing a joint return for 2009.

Line 5

Complete columns (a) through (c) on line 5 for each student for

whom you are taking the lifetime learning credit.

If you meet these conditions, check the box next to line 15,

skip line 16, and enter the amount from line 15 on line 17.

More than three students. If you are taking the lifetime

learning credit for more than three students, enter “See

attached” next to line 5 and attach a statement with the required

Earned income. Examples of earned income include wages,

information for each additional student. Include the amounts

salaries, tips, and other taxable employee pay; net earnings

from line 5, column (c), for all students in the total you enter on

from self-employment; and gross income received as a

line 6.

statutory employee. Statutory employees include full-time life

insurance agents, certain agent or commission drivers and

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

traveling salespersons, and certain homeworkers.

expenses remaining after reduction by certain tax-free

educational assistance and refunds, as explained under

Qualified Education Expenses on page 2. The expenses must

Support. Your support includes all amounts spent to provide

have been paid for the student in 2009 for academic periods

you with food, lodging, clothing, education, medical and dental

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

care, recreation, transportation, and similar necessities. To

under Prepaid Expenses on page 3. You can use the worksheet

figure your support, count support provided by you, your

below to figure the correct amount to enter in

parents, and others. However, a scholarship received by you is

column (c).

not considered support if you are a full-time student. See Pub.

501, Exemptions, Standard Deduction, and Filing Information,

Qualified Education Expenses Worksheet

for details.

for Part III, Column (c)

(Do a separate worksheet for each student)

Paperwork Reduction Act Notice. We ask for the information

on this form to carry out the Internal Revenue laws of the United

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

States. You are required to give us the information. We need it

2. Less adjustments:

to ensure that you are complying with these laws and to allow

us to figure and collect the right amount of tax.

a. Tax-free educational

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

b. Refunds of qualified

You are not required to provide the information requested on

education expenses . . . . .

a form that is subject to the Paperwork Reduction Act unless

c. Other adjustments (see

the form displays a valid OMB control number. Books or

Pub. 970, chapter 4) . . . . .

records relating to a form or its instructions must be retained as

long as their contents may become material in the

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

administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by

4. Qualified education expenses (subtract line 3

Internal Revenue Code section 6103.

from line 1). Enter here and on Form 8863,

Part III, column (c) . . . . . . . . . . . . . . . . . . .

The average time and expenses required to complete and

file this form will vary depending on individual circumstances.

Part IV

For the estimated averages, see the instructions for your

Refundable American Opportunity Credit

income tax return.

Line 15

If you have suggestions for making this form simpler, we

If you were under age 24 at the end of 2009 and the conditions

would be happy to hear from you. See the instructions for your

listed below apply to you, you cannot claim any part of the

income tax return.

American opportunity credit as a refundable credit on your tax

return. Instead, your allowed credit, which is figured in Part V,

will be used to reduce your tax as a nonrefundable credit only.

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Instructions For Form 8863 - Education Credits (American Opportunity, Hope, And Lifetime Learning Credits) - 2009 Page 5

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