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

If yes, go to question 6.

excluding income from Puerto Rico, you must include on line 14

the amount of income you excluded. For details, see Pub. 970.

6. Were either of your parents alive at the end of 2015?

If no, stop here; you do qualify to claim part of your allowable

Line 18

American opportunity credit as a refundable credit.

Enter the amount from line 18 on the Credit Limit Worksheet,

If yes, go to question 7.

line 1, later.

7. Are you filing a joint return for 2015?

Line 19

If no, you do not qualify to claim part of your allowable

American opportunity credit as a refundable credit.

Enter the amount from line 7 of the Credit Limit Worksheet here

If yes, you do qualify to claim part of your allowable

and on Form 1040, line 50; or Form 1040A, line 33.

American opportunity credit as a refundable credit.

Credit Limit Worksheet

Earned income. Earned income includes wages, salaries,

professional fees, and other payments received for personal

Complete this worksheet to figure the amount to enter on

services actually performed. Earned income includes the part of

line 19.

any scholarship or fellowship grant that represents payment for

1. Enter the amount from Form 8863,

teaching, research, or other services performed by the student

line 18

. . . . . . . . . . . . . . . . . . . . .

that are required as a condition for receiving the scholarship or

2. Enter the amount from Form 8863,

fellowship grant. Earned income does not include that part of the

line 9

. . . . . . . . . . . . . . . . . . . . . .

compensation for personal services rendered to a corporation

3. Add lines 1 and 2

. . . . . . . . . . . . . .

which represents a distribution of earnings or profits rather than

a reasonable allowance as compensation for the personal

4. Enter the amount from:

services actually rendered.

Form 1040, line 47; or

Form 1040A, line 30

If you are a sole proprietor or a partner in a trade or business

. . . . . . . . . . . .

in which both personal services and capital are material

5. Enter the total of your credits from either:

income-producing factors, earned income also includes a

Form 1040, lines 48 and 49,

reasonable allowance for compensation for personal services,

and Schedule R, line 22; or

but not more than 30% of your share of the net profits from that

Form 1040A, lines 31 and 32

. . . . . .

trade or business (after subtracting the deduction for one-half of

self-employment tax). However, if capital is not an

6. Subtract line 5 from line 4

. . . . . . . . .

income-producing factor and your personal services produced

7. Enter the smaller of line 3 or line 6 here

the business income, the 30% limit does not apply.

and on Form 8863, line 19

. . . . . . . .

Support. Your support includes food, shelter, clothing, medical

and dental care, education and the like. Generally, the amount of

an item of support will be the amount of expenses incurred by

You must complete Part III for each student for whom

the one furnishing such item. If the item of support is in the form

you are claiming either the American opportunity credit

of property or lodging, measure the amount of such item of

or lifetime learning credit before you complete either

support by its fair market value. To figure your support, count

CAUTION

Part I or Part II. Use additional copies of page 2 as needed for

support provided by you, your parents, and others. However, a

each student.

scholarship received by you is not considered support if you

were a full-time student (defined below) for 2015.

Part III — Student and Educational

Full-time student. Solely for purposes of determining whether

Institution Information

a scholarship is considered support, you were a full-time student

for 2015 if during any part of any 5 calendar months during the

Line 20

year you were enrolled as a full-time student at an eligible

educational institution (defined earlier), or took a full-time,

Enter the student's name as shown on page 1 of your tax return.

on-farm training course given by such an institution or by a state,

county, or local government agency.

Line 21

Part II — Nonrefundable Education

Enter the student's taxpayer identification number as shown on

page 1 of your tax return.

Credits

Line 22

Line 9

If the student attended only one educational institution, enter the

information about the institution and answer the questions about

Enter the amount from line 9 on the Credit Limit Worksheet,

Form 1098-T in column (a). If the student attended a second

line 2, later.

educational institution, enter the information and answers for the

Line 10

second educational institution in column (b). If the student

attended more than 2 educational institutions, attach an

Enter the amount from Part III, line 31. If you are claiming the

additional page 2 completed only through line 22.

lifetime learning credit for more than one student, add the

amounts from each student's Part III, line 31, and enter the total

If the educational institution has a foreign address, enter the

for all those students on line 10.

foreign address here and do not abbreviate the country name.

Follow the country's practice for entering the postal code and

Line 14

name of the province, country, or state.

Generally, your modified adjusted gross income is the amount

Line 23

on your Form 1040, line 38, or Form 1040A, line 22. However, if

you are filing Form 2555, Form 2555-EZ, or Form 4563, or are

If the American opportunity credit has been claimed for this

student for any 4 tax years before 2015 (including any year for

-6-

Instructions for Form 8863 (2015)

Instructions For Form 8863 Education Credits (American Opportunity And Lifetime Learning Credits) - 2015 Page 6

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