Tax Return Problem

Form 8863 Department of the Treasury Internal Revenue Service (99)

Education Credits (American Opportunity and Lifetime Learning Credits)

▶ Attach to Form 1040 or 1040-SR. ▶ Go to www.irs.gov/Form8863 for instructions and the latest information.

OMB No. 1545-0074

2020 Attachment Sequence No. 50

Name(s) shown on return Your social security number

▲! CAUTION

Complete a separate Part III on page 2 for each student for whom you’re claiming either credit before you complete Parts I and II.

Part I Refundable American Opportunity Credit 1 After completing Part III for each student, enter the total of all amounts from all Parts III, line 30 . . 1 2 Enter: $180,000 if married filing jointly; $90,000 if single, head of household,

or qualifying widow(er) . . . . . . . . . . . . . . . . . . 2

3 Enter the amount from Form 1040 or 1040-SR, line 11. If you’re filing Form 2555 or 4563, or you’re excluding income from Puerto Rico, see Pub. 970 for the amount to enter . . . . . . . . . . . . . . . . . . . 3

4 Subtract line 3 from line 2. If zero or less, stop; you can’t take any education credit . . . . . . . . . . . . . . . . . . . . . . . . 4

5 Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er) . . . . . . . . . . . . . . . . . . . 5

6 If line 4 is: • Equal to or more than line 5, enter 1.000 on line 6 . . . . . . . . . . . . . • Less than line 5, divide line 4 by line 5. Enter the result as a decimal (rounded to

at least three places) . . . . . . . . . . . . . . . . . . . . . . } . . . 6 .

7 Multiply line 1 by line 6. Caution: If you were under age 24 at the end of the year and meet the conditions described in the instructions, you can’t take the refundable American opportunity credit; skip line 8, enter the amount from line 7 on line 9, and check this box . . . . . . . . ▶ 7

8 Refundable American opportunity credit. Multiply line 7 by 40% (0.40). Enter the amount here and on Form 1040 or 1040-SR, line 29. Then go to line 9 below. . . . . . . . . . . . . . . 8

Part II Nonrefundable Education Credits 9 Subtract line 8 from line 7. Enter here and on line 2 of the Credit Limit Worksheet (see instructions) . 9

10 After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter -0- on line 18, and go to line 19 . . . . . . . . . . . 10

11 Enter the smaller of line 10 or $10,000 . . . . . . . . . . . . . . . . . . . . . 11 12 Multiply line 11 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Enter: $138,000 if married filing jointly; $69,000 if single, head of household, or

qualifying widow(er) . . . . . . . . . . . . . . . . . . . 13

14 Enter the amount from Form 1040 or 1040-SR, line 11. If you're filing Form 2555 or 4563, or you’re excluding income from Puerto Rico, see Pub. 970 for the amount to enter . . . . . . . . . . . . . . . . . . . 14

15 Subtract line 14 from line 13. If zero or less, skip lines 16 and 17, enter -0- on line 18, and go to line 19 . . . . . . . . . . . . . . . . . 15

16 Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er) . . . . . . . . . . . . . . . . . . . 16

17 If line 15 is: • Equal to or more than line 16, enter 1.000 on line 17 and go to line 18 • Less than line 16, divide line 15 by line 16. Enter the result as a decimal (rounded to at least three

places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . 18 Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet (see instructions) ▶ 18 19 Nonrefundable education credits. Enter the amount from line 7 of the Credit Limit Worksheet (see

instructions) here and on Schedule 3 (Form 1040), line 3 . . . . . . . . . . . . . . . 19 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 25379M Form 8863 (2020)

Form 8863 (2020) Page 2 Name(s) shown on return Your social security number

▲! CAUTION

Complete Part III for each student for whom you’re claiming either the American opportunity credit or lifetime learning credit. Use additional copies of page 2 as needed for each student.

Part III Student and Educational Institution Information. See instructions. 20 Student name (as shown on page 1 of your tax return) 21 Student social security number (as shown on page 1 of

your tax return)

22 Educational institution information (see instructions) a. Name of first educational institution

(1) Address. Number and street (or P.O. box). City, town or post office, state, and ZIP code. If a foreign address, see instructions.

(2) Did the student receive Form 1098-T from this institution for 2020?

Yes No

(3) Did the student receive Form 1098-T from this institution for 2019 with box 7 checked?

Yes No

(4) Enter the institution’s employer identification number (EIN) if you’re claiming the American opportunity credit or if you checked “Yes” in (2) or (3). You can get the EIN from Form 1098-T or from the institution.

–

b. Name of second educational institution (if any)

(1) Address. Number and street (or P.O. box). City, town or post office, state, and ZIP code. If a foreign address, see instructions.

(2) Did the student receive Form 1098-T from this institution for 2020?

Yes No

(3) Did the student receive Form 1098-T from this institution for 2019 with box 7 checked?

Yes No

(4) Enter the institution’s employer identification number (EIN) if you’re claiming the American opportunity credit or if you checked “Yes” in (2) or (3). You can get the EIN from Form 1098-T or from the institution.

–

23 Has the Hope Scholarship Credit or American opportunity credit been claimed for this student for any 4 tax years before 2020?

Yes — Stop! Go to line 31 for this student. No — Go to line 24.

24 Was the student enrolled at least half-time for at least one academic period that began or is treated as having begun in 2020 at an eligible educational institution in a program leading towards a postsecondary degree, certificate, or other recognized postsecondary educational credential? See instructions.

Yes — Go to line 25. No — Stop! Go to line 31 for this student.

25 Did the student complete the first 4 years of postsecondary education before 2020? See instructions.

Yes — Stop! Go to line 31 for this student.

No — Go to line 26.

26 Was the student convicted, before the end of 2020, of a felony for possession or distribution of a controlled substance?

Yes — Stop! Go to line 31 for this student.

No — Complete lines 27 through 30 for this student.

▲! CAUTION

You can't take the American opportunity credit and the lifetime learning credit for the same student in the same year. If you complete lines 27 through 30 for this student, don’t complete line 31.

American Opportunity Credit 27 Adjusted qualified education expenses (see instructions). Don’t enter more than $4,000 . . . . . 27 28 Subtract $2,000 from line 27. If zero or less, enter -0- . . . . . . . . . . . . . . . . . 28 29 Multiply line 28 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . 29

30 If line 28 is zero, enter the amount from line 27. Otherwise, add $2,000 to the amount on line 29 and enter the result. Skip line 31. Include the total of all amounts from all Parts III, line 30, on Part I, line 1 . 30 Lifetime Learning Credit

31 Adjusted qualified education expenses (see instructions). Include the total of all amounts from all Parts III, line 31, on Part II, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . 31

Form 8863 (2020)

Version A, Cycle 7

INTERNAL USE ONLY

DRAFT AS OF

December 15, 2020

Form   8863

Department of the Treasury

Internal Revenue Service (99) 

Education Credits 

(American Opportunity and Lifetime Learning Credits)

 ▶ Attach to Form 1040 or 1040-SR.

▶ Go to www.irs.gov/Form8863 for instructions and the latest information.

OMB No. 1545-0074

2020

2020. Cat. No. 25379M.

Attachment

Sequence No. 50 

Attachment Sequence No. 50. For Paperwork Reduction Act Notice, see your tax return instructions.

Your social security number

▲

!

CAUTION

Complete a separate Part III on page 2 for each student for whom you’re claiming either credit before you complete Parts I and II.

Part I

Refundable American Opportunity Credit 

1

After completing Part III for each student, enter the total of all amounts from all Parts III, line 30          

1

2

Enter: $180,000 if married filing jointly; $90,000 if single, head of household,  or qualifying widow(er)          

2

3

Enter the amount from Form 1040 or 1040-SR, line 11.  If you’re filing Form 2555 or 4563, or you’re excluding income from Puerto Rico, see Pub. 970 for the amount to enter          

3

4

Subtract line 3 from line 2. If zero or less, stop; you can’t take any education credit           

4

5

Enter: $20,000 if married filing jointly; $10,000 if single, head of household,  or qualifying widow(er)          

5

6

If line 4 is: 

• Equal to or more than line 5, enter 1.000 on line 6          

• Less than line 5, divide line 4 by line 5. Enter the result as a decimal (rounded to                   at least three places)          

}

         

6

7

Multiply line 1 by line 6. Caution: If you were under age 24 at the end of the year and meet the conditions described in the instructions, you can’t take the refundable American opportunity credit; skip line 8, enter the amount from line 7 on line 9, and check this box          ▶   

7

8

Refundable American opportunity credit. Multiply line 7 by 40% (0.40). Enter the amount here and on Form 1040 or 1040-SR, line 29. Then go to line 9 below         

8

Part II

Nonrefundable Education Credits

9

Subtract line 8 from line 7. Enter here and on line 2 of the Credit Limit Worksheet (see instructions)          

9

10

After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter -0- on line 18, and go to line 19          

10

11

Enter the smaller of line 10 or $10,000          

11

12

Multiply line 11 by 20% (0.20)          

12

13

Enter: $138,000 if married filing jointly; $69,000 if single, head of household, or qualifying widow(er)          

13

14

Enter the amount from Form 1040 or 1040-SR, line 11. If you're filing Form 2555 or 4563, or you’re excluding income from Puerto Rico, see Pub. 970 for the amount to enter          

14

15

Subtract line 14 from line 13. If zero or less, skip lines 16 and 17, enter -0- on line 18, and go to line 19           

15

16

Enter: $20,000 if married filing jointly; $10,000 if single, head of household,  or qualifying widow(er)          

16

17

If line 15 is: 

• Equal to or more than line 16, enter 1.000 on line 17 and go to line 18 

• Less than line 16, divide line 15 by line 16. Enter the result as a decimal (rounded to at least three places)                            

17

18

Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet (see instructions) ▶ 

18

19

Nonrefundable education credits. Enter the amount from line 7 of the Credit Limit Worksheet (see instructions) here and on Schedule 3 (Form 1040), line 3         

19

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 25379M

Form 8863 (2020)

Form 8863 (2020)

Page 2 

Your social security number

▲

!

CAUTION

Complete Part III for each student for whom you’re claiming either the American 

opportunity credit or lifetime learning credit. Use additional copies of page 2 as needed for each student.

Part III

Student and Educational Institution Information. See instructions.

20

21

Student social security number (as shown on page 1 of your tax return)

22

Educational institution information (see instructions)

(2)   Did the student receive Form 1098-T from this institution for 2020?

(3)   Did the student receive Form 1098-T from this institution for 2019 with box 7 checked?

(4)

Enter the institution’s employer identification number (EIN) if you’re claiming the American opportunity credit or if you checked “Yes” in (2) or (3). You can get the EIN from Form 1098-T or from the institution.

–

(2)   Did the student receive Form 1098-T from this institution for 2020?

(3)   Did the student receive Form 1098-T from this institution for 2019 with box 7 checked?

(4)

Enter the institution’s employer identification number (EIN) if you’re claiming the American opportunity credit or if you checked “Yes” in (2) or (3). You can get the EIN from Form 1098-T or from the institution.

–

23

Has the Hope Scholarship Credit or American opportunity credit been claimed for this student for any 4 tax years before 2020?

24

Was the student enrolled at least half-time for at least one academic period that began or is treated as having begun in 2020 at an eligible educational institution in a program leading towards a postsecondary degree, certificate, or other recognized postsecondary educational credential? See instructions.

25

Did the student complete the first 4 years of postsecondary education before 2020? See instructions.

26

Was the student convicted, before the end of 2020, of a felony for possession or distribution of a controlled substance?

▲

!

CAUTION

You can't take the American opportunity credit and the lifetime learning credit for the same student in the same year. If you complete lines 27 through 30 for this student, don’t complete line 31.

American Opportunity Credit 

27

Adjusted qualified education expenses (see instructions). Don’t enter more than $4,000          

27

28

Subtract $2,000 from line 27. If zero or less, enter -0-         

28

29

Multiply line 28 by 25% (0.25)         

29

30

If line 28 is zero, enter the amount from line 27. Otherwise, add $2,000 to the amount on line 29 and enter the result. Skip line 31. Include the total of all amounts from all Parts III, line 30, on Part I, line 1         

30

Lifetime Learning Credit

31

Adjusted qualified education expenses (see instructions). Include the total of all amounts from all Parts III, line 31, on Part II, line 10         

31

Form 8863 (2020)

2020 Form 8863

SE:W:CAR:MP

Education Credits (American Opportunity and Lifetime Learning Credits)