Instructions For Form 8863 Education Credits (American Opportunity And Lifetime Learning Credits) - 2015

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2015
Department of the Treasury
Internal Revenue Service
Instructions for Form 8863
Education Credits (American Opportunity and Lifetime Learning Credits)
eligible educational institution (postsecondary). For 2015, there
General Instructions
are two education credits.
The American opportunity credit, part of which may be
Section references are to the Internal Revenue Code unless
refundable.
otherwise noted.
The lifetime learning credit, which is nonrefundable.
Future Developments
A refundable credit can give you a refund even if you owe no
tax and are not otherwise required to file a tax return. A
For the latest information about developments related to Form
nonrefundable credit can reduce your tax, but any excess is
8863 and its instructions, such as legislation enacted after they
not refunded to you.
were published, go to
What's New
Both of these credits have different rules that can affect your
eligibility to claim a specific credit. These differences are shown
in Table 1 below.
Limits on modified adjusted gross income (MAGI). The
lifetime learning credit MAGI limit increases to $130,000 if you
Who Can Claim an Education Credit
are filing married filing jointly ($65,000 if you are filing single,
You may be able to claim an education credit if you, your
head of household, or qualifying widow(er)). The American
opportunity credit MAGI limits remain unchanged. See Table 1
spouse, or a dependent you claim on your tax return was a
and the instructions for line 3 or line 14.
student enrolled at or attending an eligible educational
institution. For 2015, the credits are based on the amount of
Purpose of Form
adjusted qualified education expenses paid for the student in
2015 for academic periods beginning in 2015 or beginning in the
Use Form 8863 to figure and claim your education credits, which
first 3 months of 2016.
are based on adjusted qualified education expenses paid to an
Table 1.
Comparison of Education Credits for 2015
Caution. You can claim both the American opportunity credit and the lifetime learning credit on the same
return, but not for the same student.
American Opportunity Credit
Lifetime Learning Credit
Maximum credit
Up to $2,500 credit per eligible student
Up to $2,000 credit per return
Limit on modified
$180,000 if married filing jointly;
$130,000 if married filing jointly;
adjusted gross income
$90,000 if single, head of household, or qualifying
$65,000 if single, head of household, or qualifying
(MAGI)
widow(er)
widow(er)
Refundable or
40% of credit may be refundable; the rest is
Nonrefundable—credit limited to the amount of tax you
nonrefundable
nonrefundable
must pay on your taxable income
Number of years of
Available ONLY if the student had not completed the first
Available for all years of postsecondary education and for
postsecondary education
4 years of postsecondary education before 2015
courses to acquire or improve job skills
Number of tax years
Available ONLY for 4 tax years per eligible student
Available for an unlimited number of tax years
credit available
(including any year(s) Hope credit was claimed)
Type of program required
Student must be pursuing a program leading to a degree
Student does not need to be pursuing a program leading
or other recognized education credential
to a degree or other recognized education credential
Number of courses
Student must be enrolled at least half time for at least
Available for one or more courses
one academic period beginning during 2015 (or the first
3 months of 2016 if the qualified expenses were paid in
2015)
Felony drug conviction
As of the end of 2015, the student had not been
Felony drug convictions do not make the student
convicted of a felony for possessing or distributing a
ineligible
controlled substance
Qualified expenses
Tuition, required enrollment fees, and course materials
Tuition and required enrollment fees (including amounts
that the student needs for a course of study whether or
required to be paid to the institution for course-related
not the materials are bought at the educational institution
books, supplies, and equipment)
as a condition of enrollment or attendance
Payments for academic
Payments made in 2015 for academic periods beginning in 2015 or beginning in the first 3 months of 2016
periods
Dec 14, 2015
Cat. No. 53002G

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