8863 Ohjeet
Muoto 8863, Opetusluotto (American Opportunity and Lifetime Learning Credits)
2023
Liittyvät lomakkeet
- Muoto 8863 - Koulutusluotto (amerikkalainen mahdollisuus ja elinikäinen oppiminen)
Department of the Treasury
Internal Revenue Service
2023
Instructions for Form 8863
Education Credits (American Opportunity and Lifetime Learning Credits)
Section references are to the Internal Revenue Code unless
otherwise noted.
may claim an education tax credit. You may include qualified
tuition and related expenses that are not reported on Form
1098-T when claiming one of the related credits if you can
substantiate payment of these expenses.You may not include
expenses paid on the Form 1098-T that have been paid by
qualified scholarships, including those that were not processed
by the universities.
Future Developments
For the latest information about developments related to Form
8863 and its instructions, such as legislation enacted after they
To claim the American opportunity credit, you must
provide the educational institution’s employer
!
CAUTION
identification number (EIN) on your Form 8863. You
Reminders
should be able to get this information from Form 1098-T or the
educational institution.
Limits on modified adjusted gross income (MAGI). The
lifetime learning credit and the American opportunity credit MAGI
limits are $180,000 if you're married filing jointly ($90,000 if
you're filing single, head of household, or qualifying surviving
spouse). See Table 1 and the instructions for line 3 or line 14.
Ban on claiming the American opportunity credit. If you
claim the American opportunity credit even though you're not
eligible, you may be banned from claiming the credit depending
on your conduct. See the Caution statement under American
Opportunity Credit, later.
Form 1098-T requirement. To be eligible to claim the
American opportunity credit or the lifetime learning credit, the law
requires a taxpayer (or a dependent) to have received Form
1098-T, Tuition Statement, from an eligible educational
institution, whether domestic or foreign.
Taxpayer identification number (TIN) needed by due date
of return. If you haven’t been issued a TIN by the due date of
your 2023 return (including extensions), you can’t claim the
American opportunity credit on either your original or an
amended 2023 return. Also, the American opportunity credit isn’t
allowed on either your original or an amended 2023 return for a
student who hasn’t been issued a TIN by the due date of your
2023 return (including extensions).
However, you may claim one of these education benefits if the
student doesn't receive a Form 1098-T because the student’s
educational institution isn't required to furnish a Form 1098-T to
the student under existing rules (for example, if the student is a
qualified nonresident alien, has certain qualified education
expenses paid entirely with scholarships, has certain qualified
education expenses paid under a formal billing arrangement, or
is enrolled only in courses for which no academic credit is
awarded). If a student’s educational institution isn't required to
provide a Form 1098-T to the student, you may claim one of
these education benefits without a Form 1098-T if you otherwise
qualify, can demonstrate that you (or a dependent) were enrolled
at an eligible educational institution, and can substantiate the
payment of qualified tuition and related expenses.
You may also claim one of these educational benefits if the
student attended an eligible educational institution required to
furnish Form 1098-T but the student doesn't receive Form
1098-T before you file your tax return (for example, if the
institution is otherwise required to furnish the Form 1098-T and
doesn't furnish it or refuses to do so) and you take the following
required steps: After January 31, 2024, but before you file the
return, you or the student must request that the educational
institution furnish a Form 1098-T. You must fully cooperate with
the educational institution's efforts to gather the information
needed to furnish the Form 1098-T. You must also otherwise
qualify for the benefit, be able to demonstrate that you (or a
dependent) were enrolled at an eligible educational institution,
and substantiate the payment of qualified tuition and related
expenses.
Form 8862 may be required. If your American opportunity
credit was denied or reduced for any reason other than a math or
clerical error for any tax year beginning after 2015, you must
attach a completed Form 8862, Information To Claim Certain
Credits After Disallowance, to your tax return for the next tax year
for which you claim the credit. See Form 8862 and its
instructions for details.
General Instructions
Purpose of Form
Use Form 8863 to figure and claim your education credits, which
are based on adjusted qualified education expenses paid to an
eligible educational institution (postsecondary). For 2023, there
are two education credits.
The American opportunity credit, part of which may be
•
refundable.
The lifetime learning credit, which is nonrefundable.
•
A refundable credit can give you a refund when the credit is
more than the tax you owe, even if you aren’t required to file a tax
return. A nonrefundable credit can reduce your tax, but any
excess isn't refunded to you.
The amount of qualified tuition and related expenses reported
on Form 1098-T may not reflect the total amount of the qualified
tuition and related expenses paid during the year for which you
Both of these credits have different rules that can affect your
eligibility to claim a specific credit. These differences are shown
in Table 1.
Nov 14, 2023
Cat. No. 53002G
Table 1. Comparison of Education Credits for 2023
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
adjusted gross income
(MAGI)
$180,000 if married filing jointly;
$90,000 if single, head of household, or qualifying
surviving spouse
$180,000 if married filing jointly;
$90,000 if single, head of household, or qualifying
surviving spouse
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 2023
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
Type of program required Student must be pursuing a program leading to a degree Student doesn't need to be pursuing a program leading
or other recognized education credential
to a degree or other recognized education credential
Available for one or more courses
Number of courses
Student must be enrolled at least half-time for at least
one academic period beginning during 2023 (or the first
3 months of 2024 if the qualified expenses were paid in
2023)
Felony drug conviction
Qualified expenses
As of the end of 2023, the student had not been
convicted of a felony for possessing or distributing a
controlled substance
Felony drug convictions don't make the student ineligible
Tuition, required enrollment fees, and course materials
Tuition and required enrollment fees (including amounts
required to be paid to the institution for course-related
that the student needs for a course of study whether or
not the materials are bought at the educational institution books, supplies, and equipment)
as a condition of enrollment or attendance
Payments for academic
periods
Payments made in 2023 for academic periods beginning in 2023 or beginning in the first 3 months of 2024
TIN needed by filing due
Filers and students must have been issued a TIN by the
due date of their 2023 return (including extensions)
Students must have been issued a TIN by the due date of
their 2023 return (including extensions)
date
Educational institution's
EIN
You must provide the educational institution's employer
Educational institution’s employer identification number
identification number (EIN) on your Form 8863
(EIN) is not required on your Form 8863
Who cannot claim a credit. You cannot claim an education
Who Can Claim an Education Credit
credit on a 2023 tax return if any of the following apply.
You may be able to claim an education credit if you, your spouse,
or a dependent you claim on your tax return was a student
enrolled at or attending an eligible educational institution. For
2023, the credits are based on the amount of adjusted qualified
education expenses paid for the student in 2023 for academic
periods beginning in 2023 or beginning in the first 3 months of
2024.
1. You're claimed as a dependent on another person's tax
return, such as your parent's return.
2. Your filing status is married filing separately.
3. You (or your spouse) were a nonresident alien for any part
of 2023 and didn't elect to be treated as a resident alien for tax
purposes.
Academic period. An academic period is any quarter,
semester, trimester, or any other period of study as reasonably
determined by an eligible educational institution. If an eligible
educational institution uses credit hours or clock hours and
doesn't have academic terms, each payment period may be
treated as an academic period. For details, see Academic period
in chapters 2 and 3 of Pub. 970.
4. Your MAGI is $180,000 or more if married filing jointly; or
$90,000 or more if single, head of household, or qualifying
surviving spouse with dependent child.
5. The student has not been issued a TIN by the due date of
their 2023 return (including extensions).
Generally, your MAGI is the amount on your Form 1040 or
1040-SR, line 11. However, if you're filing Form 2555, Foreign
Earned Income; or Form 4563, Exclusion of Income for Bona
Fide Residents of American Samoa; or are excluding income
from Puerto Rico, add to the amount on your Form 1040 or
1040-SR, line 11, the amount of income you excluded. For
details, see Pub. 970.
Who can claim a dependent's expenses. If a student is
claimed as a dependent on another person's tax return, all
qualified education expenses of the student are treated as
having been paid by that person. Therefore, only that person can
claim an education credit for the student. If a student isn't
claimed as a dependent on another person's tax return, only the
student can claim the credit.
American Opportunity Credit
Expenses paid by a third party. Qualified education expenses
paid on behalf of the student by someone other than the student
(such as a relative) are treated as paid by the student. However,
qualified education expenses paid (or treated as paid) by a
student who is claimed as a dependent on your tax return are
treated as paid by you. Therefore, you're treated as having paid
expenses that were paid by the third party. For more information
and an example, see Who Can Claim a Dependent's Expenses
in Pub. 970, chapters 2 and 3.
Don't claim the American opportunity credit for 2 years
after there was a final determination that your claim was
!
CAUTION
due to reckless or intentional disregard of the rules, or 10
years after there was a final determination that your claim was
due to fraud.
You may be able to claim a credit of up to $2,500 for adjusted
qualified education expenses (defined later) paid for each
student who qualifies for the American opportunity credit. This
credit equals 100% of the first $2,000 and 25% of the next
2
Instructions for Form 8863 (2023)
$2,000 of adjusted qualified education expenses paid for each
eligible student. The amount of your credit is gradually reduced
(phased out) if your MAGI is between $80,000 and $90,000
($160,000 and $180,000 if you file a joint return). You cannot
claim a credit if your MAGI is $90,000 or more ($180,000 or more
if you file a joint return).
Because the tuition you paid in 2023 relates to an academic
period that begins in the first 3 months of 2024, your eligibility to
claim an American opportunity credit in 2023 is determined as if
the 2024 spring semester began in 2023. Therefore, you satisfy
this third requirement.
4. As of the end of 2023, the student had not been convicted
of a federal or state felony for possessing or distributing a
controlled substance.
If you can choose between using a student's adjusted
qualified education expenses for the American
opportunity credit or the lifetime learning credit, the
TIP
5. Filers and students must have been issued a TIN by the
American opportunity credit will always be greater than the
lifetime learning credit.
due date of their 2023 return (including extensions).
6. The student received Form 1098-T from the educational
institution for 2023 or you followed the procedures under Form
1098-T requirement, earlier.
Student qualifications. Generally, you can claim the American
opportunity credit for a student on a 2023 tax return only if all of
the following seven requirements are met.
1. As of the beginning of 2023, the student had not
completed the first 4 years of postsecondary education
(generally, the freshman through senior years of college), as
determined by the eligible educational institution. For this
purpose, don't include academic credit awarded solely because
of the student's performance on proficiency examinations.
7. You must provide the educational institution's employer
identification number (EIN) on your Form 8863.
If the requirements above aren't met for any student, you
cannot claim the American opportunity credit for that
student. You may be able to claim the lifetime learning
TIP
credit for part or all of that student's qualified education
expenses instead, if certain requirements are met.
2. The American opportunity credit has not been claimed (by
you or anyone else) for this student for any 4 tax years before
2023. If the American opportunity credit has been claimed for
this student for any 3 or fewer tax years before 2023, this
requirement is met.
Example 1. Sharon was eligible for the American opportunity
credit for 2017, 2018, 2019, and 2022. Sharon’s parents claimed
the American opportunity credit for her on their 2017, 2018, and
2019 tax returns. Sharon claimed the American opportunity
credit on her own 2022 tax return. The American opportunity
credit has been claimed for Sharon for 4 tax years before 2023.
Therefore, the American opportunity credit cannot be claimed
for Sharon for 2023. If Sharon was to file Form 8863 for 2023,
she would check “Yes” for Part III, line 23, and would be eligible
to claim only the lifetime learning credit if she meets all other
requirements.
Lifetime Learning Credit
The lifetime learning credit equals 20% of adjusted qualified
education expenses (defined later), up to a maximum of $10,000
of adjusted qualified education expenses per return. Therefore,
the maximum lifetime learning credit you can claim on your
return for the year is $2,000, regardless of the number of
students for whom you paid qualified education expenses. The
amount of your credit is gradually reduced (phased out) if your
MAGI is between $80,000 and $90,000 ($160,000 and $180,000
if you file a joint return). You cannot claim a credit if your MAGI is
$90,000 or more ($180,000 or more if you file a joint return).
You cannot claim the lifetime learning credit for any
student if you claim the American opportunity credit for
!
CAUTION
that student for the same tax year.
Example 2. Wilbert was eligible for the American opportunity
credit for 2018, 2019, 2020, and 2023. Wilbert’s parents claimed
the American opportunity credit for Wilbert on their tax returns for
2018, 2019, and 2020. No one claimed an American opportunity
credit for Wilbert for any other tax year. The American
Qualified Education Expenses
Generally, qualified education expenses are amounts paid in
2023 for tuition and fees required for the student's enrollment or
attendance at an eligible educational institution. It doesn't matter
whether the expenses were paid in cash, by check, by credit or
debit card, or with borrowed funds.
opportunity credit has been claimed for Wilbert for only 3 tax
years before 2023. Therefore, Wilbert meets the second
requirement to be eligible for the American opportunity credit. If
Wilbert were to file Form 8863 for 2023, he would check “No” for
Part III, line 23. If Wilbert meets all of the other requirements, he
is eligible for the American opportunity credit.
For course-related books, supplies, and equipment, only
certain expenses qualify.
American opportunity credit: Qualified education expenses
•
include amounts paid for tuition, fees, and course materials,
which include books, supplies, and equipment needed for a
course of study, whether or not the materials are purchased from
the educational institution as a condition of enrollment or
attendance.
3. For at least one academic period beginning or treated as
beginning (see next) in 2023, the student both:
a. Was enrolled in a program that leads to a degree,
certificate, or other recognized educational credential; and
Lifetime learning credit: Qualified education expenses include
•
b. Carried at least one-half the normal full-time workload for
amounts paid for books, supplies, and equipment only if
required to be paid to the institution as a condition of enrollment
or attendance.
his or her course of study.
The standard for what is half of the normal full-time workload
is determined by each eligible educational institution. However,
the standard may not be lower than any of those established by
the U.S. Department of Education under the Higher Education
Act of 1965.
For 2023, you must treat an academic period beginning in the
first 3 months of 2024 as if it began in 2023 if qualified education
expenses for the student were paid in 2023 for that academic
Qualified education expenses include nonacademic fees,
such as student activity fees, athletic fees, or other expenses
unrelated to the academic course of instruction, only if the fee
must be paid to the institution as a condition of enrollment or
attendance. However, fees for personal expenses (described
below) are never qualified education expenses.
Qualified education expenses don't include amounts paid for
the following.
Example. You enroll on a full-time basis in a degree program
for the 2024 spring semester, which begins in January 2024. You
pay your tuition for the 2024 spring semester in December 2023.
Personal expenses. This means room and board, insurance,
•
medical expenses (including student health fees), transportation,
and other similar personal, living, or family expenses.
3
Instructions for Form 8863 (2023)
Any course or other education involving sports, games, or
You may be able to increase the combined value of an
education credit if the student includes some or all of a
scholarship or fellowship grant in income in the year it is
•
hobbies, or any noncredit course, unless such course or other
education is part of the student's degree program or (for the
lifetime learning credit only) helps the student acquire or improve
job skills.
TIP
received.
Generally, any scholarship or fellowship grant is treated as
tax-free educational assistance. However, a scholarship or
fellowship grant isn't treated as tax-free educational assistance
to the extent the student includes it in gross income (the
student may or may not be required to file a tax return) for the
year the scholarship or fellowship grant is received and either:
You may receive Form 1098-T from the institution reporting
payments received in 2023 (box 1). However, the amount in
box 1 of Form 1098-T may be different from the amount you paid
(or are treated as having paid). In completing Form 8863, use
only the amounts you actually paid (plus any amounts you're
treated as having paid) in 2023 (reduced, as necessary, as
See chapters 2 and 3 of Pub. 970 for more information on Form
1098-T.
The scholarship or fellowship grant (or any part of it) must be
•
applied (by its terms) to expenses (such as room and board)
other than qualified education expenses, or
The scholarship or fellowship grant (or any part of it) may be
•
applied (by its terms) to expenses (such as room and board)
other than qualified education expenses.
Qualified education expenses paid on behalf of the student by
someone other than the student (such as a relative) are treated
as paid by the student. Qualified education expenses paid (or
treated as paid) by a student who is claimed as a dependent on
your tax return are treated as paid by you.
A student cannot choose to include in income a
scholarship or fellowship grant provided by an Indian
!
CAUTION
tribal government that is excluded from income under
the Tribal General Welfare Exclusion Act of 2014 or benefits
provided by an educational program described in section 5.02(2)
(b)(ii) of Rev. Proc. 2014-35, available at IRS.gov/irb/
If you or the student takes a deduction for higher education
expenses, such as on Schedule C (Form 1040), you cannot use
those same expenses in your qualified education expenses
when figuring your education credits.
Coordination with Pell grants and other scholarships or fel-
lowship grants. You may be able to increase an education
credit and reduce your total tax or increase your tax refund if the
student (you, your spouse, or your dependent) chooses to
include all or part of certain scholarships or fellowship grants in
income. The scholarship or fellowship grant must be one that
may qualify as a tax-free scholarship under the rules discussed
in chapter 1 of Pub. 970. Also, the scholarship or fellowship grant
must be one that may (by its terms) be used for expenses other
than qualified education expenses (such as room and board).
The fact that the educational institution applies the
scholarship or fellowship grant to qualified education expenses
(such as tuition and related fees) doesn't prevent the student
from choosing to apply certain scholarships or fellowship grants
to other expenses (such as room and board). By choosing to do
so, the student will include the part applied to other expenses
(such as room and board) in gross income and may be required
to file a tax return. However, this allows payments made in cash,
by check, by credit or debit card, or with borrowed funds, such
as a student loan, to be applied to qualified education expenses.
These payments, unlike certain scholarships or fellowship
grants, won't reduce the qualified education expenses available
to figure an education credit. The result is generally a larger
education credit that reduces your total tax or increases your tax
refund.
Example 1. Last year, your child graduated from high school
and enrolled in college for the fall semester. You and your child
meet all other requirements to claim the American opportunity
credit, and you need to determine adjusted qualified education
expenses to figure the credit.
Your child has $5,000 of qualified education expenses and
$4,000 of room and board. Your child received a $5,000 Pell
grant and took out a $2,750 student loan to pay these expenses.
You paid the remaining $1,250. The Pell grant by its terms may
be used for any of these expenses.
Any qualified expenses used to figure the education
credits cannot be taken into account in determining the
!
CAUTION
amount of a distribution from a Coverdell ESA or a
qualified tuition program (section 529 plan) that is excluded from
gross income. See Pub. 970, chapters 6 and 7, for more
information.
Prepaid Expenses
Qualified education expenses paid in 2023 for an academic
period that begins in the first 3 months of 2024 can be used in
figuring an education credit for 2023 only. For example, if you pay
$2,000 in December 2023 for qualified tuition for the 2024 winter
quarter that begins in January 2024, you can use that $2,000 in
figuring an education credit for 2023 only (if you meet all the
other requirements).
You cannot use any amount you paid in 2022 or 2024 to
figure the qualified education expenses you use to figure
!
CAUTION
your 2023 education credit(s).
Adjusted Qualified Education
Expenses
For each student, reduce the qualified education expenses paid
in 2023 by or on behalf of that student under the following rules.
The result is the amount of adjusted qualified education
expenses for each student.
Tax-free educational assistance. For tax-free educational
assistance received in 2023, reduce the qualified education
expenses for each academic period by the amount of tax-free
educational assistance allocable to that academic period. See
Academic period, earlier.
Tax-free educational assistance includes:
1. The tax-free part of any scholarship or fellowship grant
If you and your child choose to apply the Pell grant to the
qualified education expenses, it will qualify as a tax-free
scholarship under the rules discussed in chapter 1 of Pub. 970.
Your child won't include any part of the Pell grant in gross
income. After reducing qualified education expenses by the
tax-free scholarship, you will have $0 ($5,000 − $5,000) of
adjusted qualified education expenses available to figure your
credit. Your credit will be $0.
(including Pell grants);
2. The tax-free part of any employer-provided educational
assistance;
3. Veterans' educational assistance; and
4. Any other educational assistance that is excludable from
gross income (tax free), other than as a gift, bequest, devise, or
inheritance.
4
Instructions for Form 8863 (2023)
Example 2. The facts are the same as in Example 1. If,
unlike in Example 1, you and your child choose to apply only
$1,000 of the Pell grant to the qualified education expenses and
to apply the remaining $4,000 to room and board, only $1,000
will qualify as a tax-free scholarship.
Your child will include the $4,000 applied to room and board
in gross income, and it will be treated as earned income for
purposes of determining whether your child is required to file a
tax return. If the $4,000 is your child’s only income, your child
won't be required to file a tax return.
After reducing qualified education expenses by the tax-free
scholarship, you will have $4,000 ($5,000 − $1,000) of adjusted
qualified education expenses available to figure your credit. Your
refundable American opportunity credit will be $1,000. Your
nonrefundable credit may be as much as $1,500, but depends
on your tax liability.
If you're not otherwise required to file a tax return, you should
file to get a refund of your $1,000 refundable credit, but your tax
liability and nonrefundable credit will be $0.
Refunds received after 2023 and after your income tax
return is filed. If anyone receives a refund after 2023 of
qualified education expenses paid on behalf of a student in 2023
and the refund is received after you file your 2023 income tax
return, you may need to repay some or all of the credit that you
claimed. See Credit recapture next.
Credit recapture. If any tax-free educational assistance for the
qualified education expenses paid in 2023, or any refund of your
qualified education expenses paid in 2023, is received after you
file your 2023 income tax return, you must recapture (repay) any
excess credit. You do this by refiguring the amount of your
adjusted qualified education expenses for 2023 by reducing the
expenses by the amount of the refund or tax-free educational
assistance. You then refigure your education credit(s) for 2023
and figure the amount by which your 2023 tax liability would have
increased if you had claimed the refigured credit(s). Include that
amount as an additional tax for the year the refund or tax-free
assistance was received.
Example. You paid $8,000 tuition and fees in December
2023 for your child's spring semester beginning in January 2024.
You filed your 2023 tax return on February 2, 2024, and claimed
a lifetime learning credit of $1,600 ($8,000 qualified education
expense paid x 20% (0.20)). You claimed no other tax credits.
After you filed your return, your child withdrew from two courses
and you received a refund of $1,400. You must refigure your
2023 lifetime learning credit using $6,600 ($8,000 qualified
education expenses − $1,400 refund). The refigured credit is
$1,320 and your tax liability increased by $280. You must include
the difference of $280 ($1,600 credit originally claimed − $1,320
refigured credit) as additional tax on your 2024 income tax
return. See the instructions for your 2024 income tax return to
determine where to include this tax.
Note. The result may be different if your child has other income
or if you're the student. If you're the student and you claim the
earned income credit, choosing not to apply a Pell grant to
qualified education expenses may decrease your earned income
credit at certain income levels by increasing your adjusted gross
income. For details and more examples, see Pub. 970.
Unlike a scholarship or fellowship grant, a tax-free
distribution from a Coverdell ESA or qualified tuition
TIP
program (section 529 plan) can be applied to either
qualified education expenses or certain other expenses (such as
room and board) without creating a tax liability for the student.
An education credit can be claimed in the same year the
beneficiary takes a tax-free distribution from a Coverdell ESA or
qualified tuition program, as long as the same expenses aren't
used for both benefits. For details, see Pub. 970, chapters 6 and
7.
If you paid qualified education expenses in both 2023
and 2024 for an academic period that begins in the first
3 months of 2024 and you receive tax-free educational
TIP
assistance, or a refund, as described above, you may choose to
reduce the qualified education expenses you paid in 2024
instead of reducing the qualified education expenses you paid in
2023.
Tax-free educational assistance treated as a refund. Some
tax-free educational assistance received after 2023 may be
treated as a refund of qualified education expenses paid in 2023.
This tax-free educational assistance is any tax-free educational
assistance received by you or anyone else after 2023 for
qualified education expenses paid on behalf of a student in 2023
(or attributable to enrollment at an eligible educational institution
during 2023).
If this tax-free educational assistance is received after 2023,
but before you file your 2023 income tax return, see Refunds
later. If this tax-free educational assistance is received after 2023
and after you file your 2023 income tax return, see Refunds
Eligible Educational Institution
An eligible educational institution is generally any accredited
public, nonprofit, or proprietary (private) college, university,
vocational school, or other postsecondary institution. Also, the
institution must be eligible to participate in a student aid program
administered by the Department of Education. Virtually all
accredited postsecondary institutions meet this definition.
An eligible educational institution also includes certain
educational institutions located outside the United States that
are eligible to participate in a student aid program administered
by the Department of Education.
Refunds. A refund of qualified education expenses may reduce
qualified education expenses for the tax year or may require you
to repay (recapture) the credit that you claimed in an earlier year.
Some tax-free educational assistance received after 2023 may
earlier.
Refunds received in 2023. For each student, figure the
adjusted qualified education expenses for 2023 by adding all the
qualified education expenses paid in 2023 and subtracting any
refunds of those expenses received from the eligible educational
institution during 2023.
Refunds received after 2023, but before your income tax
return is filed. If anyone receives a refund after 2023 of
qualified education expenses paid on behalf of a student in 2023
and the refund is received before you file your 2023 income tax
return, reduce the amount of qualified education expenses for
2023 by the amount of the refund.
The educational institution should be able to tell you if it
is an eligible educational institution.
TIP
Additional Information
See Pub. 970, chapters 2 and 3, for more information about
these credits.
Specific Instructions
You must complete a separate Part III on page 2 for
each individual for whom you're claiming either
!
CAUTION
credit before you complete Parts I and II.
5
Instructions for Form 8863 (2023)
If yes, go to question 6.
6. Were either of your parents alive at the end of 2023?
If no, stop here; you do qualify to claim part of your allowable
American opportunity credit as a refundable credit.
If yes, go to question 7.
Part I—Refundable American
Opportunity Credit
Line 1
Enter the amount from Part III, line 30. If you're claiming the
American opportunity credit for more than one student, add the
amounts from each student's Part III, line 30, and enter the total
for those students on line 1.
7. Are you filing a joint return for 2023?
If no, you don't qualify to claim part of your allowable
American opportunity credit as a refundable credit.
If yes, you do qualify to claim part of your allowable
American opportunity credit as a refundable credit.
Line 3
The educational institution's EIN must be provided on
Enter your MAGI. Generally, your MAGI is the amount on your
Form 1040 or 1040-SR, line 11. However, if you're filing Form
2555, or Form 4563, or are excluding income from Puerto Rico,
you must include on line 3 the amount of income you excluded.
For details, see Pub. 970.
line 22(4) if the American opportunity credit is claimed
!
CAUTION
for this student.
Earned income. Earned income includes wages, salaries,
professional fees, and other payments received for personal
services actually performed. Earned income includes the part of
any scholarship or fellowship grant that represents payment for
teaching, research, or other services performed by the student
that are required as a condition for receiving the scholarship or
fellowship grant. Earned income doesn't include that part of the
compensation for personal services rendered to a corporation
which represents a distribution of earnings or profits rather than
a reasonable allowance as compensation for the personal
services actually rendered.
Line 7
If you were under age 24 at the end of 2023 and the conditions
listed below apply to you, you cannot claim any part of the
American opportunity credit as a refundable credit on your tax
return. Instead, you can claim your allowed credit, figured in Part
II, only as a nonrefundable credit to reduce your tax.
You don't qualify for a refundable American opportunity credit
if 1 (a, b, or c), 2, and 3 below apply to you.
If you're a sole proprietor or a partner in a trade or business in
which both personal services and capital are material
income-producing factors, earned income also includes a
reasonable allowance for compensation for personal services,
but not more than 30% of your share of the net profits from that
trade or business (after subtracting the deduction for one-half of
self-employment tax). However, if capital isn't an
1. You were:
a. Under age 18 at the end of 2023, or
b. Age 18 at the end of 2023 and your earned income
(defined later) was less than one-half of your support
(defined later), or
c. Over age 18 and under age 24 at the end of 2023 and a
full-time student (defined later) and your earned income
(defined later) was less than one-half of your support
(defined later).
income-producing factor and your personal services produced
the business income, the 30% limit doesn't apply.
Support. 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 paid by the one
furnishing such item. If the item of support is in the form of
property or lodging, measure the amount of such item of support
by its fair market value. To figure your support, count support
provided by you, your parents, and others. However, a
scholarship received by you isn't considered support if you were
a full-time student (defined next) for 2023.
2. At least one of your parents was alive at the end of 2023.
3. You're not filing a joint return for 2023.
If you meet these conditions, check the box next to line 7, skip
line 8, and enter the amount from line 7 on line 9. If these
conditions don't apply to you, complete line 8.
Full-time student. Solely for purposes of determining whether
a scholarship is considered support, you were a full-time student
for 2023 if during any part of any 5 calendar months during the
year you were enrolled as a full-time student at an eligible
educational institution (defined earlier), or took a full-time,
on-farm training course given by such an institution or by a state,
county, or local government agency.
You can answer the following questions to determine whether
you qualify for a refundable American opportunity credit.
1. Were you under age 24 at the end of 2023?
If no, stop here; you do qualify to claim part of the allowable
American opportunity credit as a refundable credit.
If yes, go to question 2.
Part II—Nonrefundable Education
Credits
2. Were you over age 18 at the end of 2023?
If yes, go to question 3.
If no, go to question 4.
3. Were you a full-time student (defined later) for 2023?
Line 9
If no, stop here; you do qualify to claim part of your allowable
American opportunity credit as a refundable credit.
If yes, go to question 5.
Enter the amount from line 9 on the Credit Limit Worksheet,
line 2, later.
Line 10
4. Were you age 18 at the end of 2023?
Enter the amount from Part III, line 31. If you're claiming the
lifetime learning credit for more than one student, add the
amounts from each student's Part III, line 31, and enter the total
for all those students on line 10.
If yes, go to question 5.
If no, go to question 6.
5. Was your earned income (defined later) less
than one-half of your support (defined later) for 2023?
If no, stop here; you do qualify to claim part of your allowable
American opportunity credit as a refundable credit.
6
Instructions for Form 8863 (2023)
Follow the country's practice for entering the postal code and
name of the province, county, or state.
Line 14
Generally, your MAGI is the amount on your Form 1040 or
1040-SR, line 11. However, if you're filing Form 2555, or Form
4563, or are excluding income from Puerto Rico, you must
include on line 14 the amount of income you excluded. For
details, see Pub. 970.
The educational institution's EIN must be provided on
line 22(4) if the American opportunity credit is claimed for this
student.
Line 23
Line 18
If the American opportunity credit has been claimed for this
student for any 4 tax years before 2023, the American
opportunity credit cannot be claimed for this student for 2023.
Check “Yes” and go to line 31.
Enter the amount from line 18 on the Credit Limit Worksheet,
line 1, later.
Line 19
If the American opportunity credit has been claimed for this
qualifications, earlier.
Enter the amount from line 7 of the Credit Limit Worksheet here
and on Schedule 3 (Form 1040), line 3.
Credit Limit Worksheet
Complete this worksheet to figure the amount to enter on
line 19.
Line 24
Check “Yes” if the student enrolled at least half-time for at least
one academic period that began or is treated as having begun
(see below) in 2023 at an eligible educational institution in a
program leading towards a postsecondary degree, certificate, or
other recognized postsecondary educational credential.
Otherwise, check “No.”
1. Enter the amount from Form 8863,
line 18 . . . . . . . . . . . . . . . . . . . . .
1.
2. Enter the amount from Form 8863,
line 9 . . . . . . . . . . . . . . . . . . . . . .
2.
3.
3. Add lines 1 and 2 . . . . . . . . . . . . . .
4. Enter the amount from:
If any qualified education expenses for the student were paid
in 2023 for an academic period beginning in the first 3 months of
2024, treat that academic period as if it began in 2023. See
Form 1040 or 1040-SR, line 18
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Enter the total of your credits from:
Schedule 3 (Form 1040), lines 1, 2, 6d
and 6l
If you checked “Yes,” go to line 25. If you checked “No,” the
student isn't eligible for the American opportunity credit; skip
lines 25 through 30 and go to line 31.
Line 25
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6.
Check “Yes” if the student completed the first 4 years of
6. Subtract line 5 from line 4 . . . . . . . . .
postsecondary education before 2023. Otherwise, check “No.”
7. Enter the smaller of line 3 or line 6 here
and on Form 8863, line 19 . . . . . . . .
7.
A student has completed the first 4 years of postsecondary
education before 2023 if the educational institution has awarded
the student 4 years of academic credit at that institution for
postsecondary coursework the student completed before 2023.
Disregard any academic credit awarded solely on the basis of
the student's performance on proficiency examinations.
You must complete Part III for each student for whom
you're claiming either the American opportunity credit or
lifetime learning credit before you complete either Part I
!
CAUTION
or Part II. Use additional copies of page 2 as needed for each
student.
If you checked “No,” go to line 26. If you checked “Yes,” the
student isn't eligible for the American opportunity credit; skip
lines 26 through 30 and go to line 31.
Part III—Student and Educational
Institution Information
Line 26
Check “Yes” if the student was convicted, before the end of
2023, of a federal or state felony for possession or distribution of
a controlled substance.
Line 20
Enter the student's name as shown on page 1 of your tax return.
If you checked “No,” complete lines 27 through 30 for this
student. If you checked “Yes,” the student isn't eligible for the
American opportunity credit; skip lines 27 through 30 and go to
line 31.
Line 21
Enter the student’s social security number (or other TIN, if
applicable) as shown on page 1 of your tax return.
You cannot claim the American opportunity credit and
Line 22
the lifetime learning credit for the same student in the
!
CAUTION
same year. If you complete lines 27 through 30 for this
If the student attended only one educational institution, enter the
information about the institution and answer the questions about
Form 1098-T in column (a). If the student attended a second
educational institution, enter the information and answers for the
second educational institution in column (b). If the student
attended more than two educational institutions, attach an
additional page 2 completed only through line 22.
student, don't complete line 31.
American Opportunity Credit
Line 27
Enter the student's adjusted qualified education expenses for
Adjusted Qualified Education Expenses Worksheet, later, to
figure each student's adjusted qualified education expenses.
If the educational institution has a foreign address, enter the
foreign address here and don't abbreviate the country name.
7
Instructions for Form 8863 (2023)
Don't enter more than $4,000. Enter the total of all amounts from
all Parts III, line 30, on Part I, line 1.
If you're claiming an education credit for more than one
student, complete a separate Part III for each student
before returning to page 1 to complete Parts I and II.
!
CAUTION
Lifetime Learning Credit
Line 31
Enter the student's adjusted qualified education expenses on
Adjusted Qualified Education Expenses Worksheet next to figure
each student's adjusted qualified education expenses. Enter the
total of all amounts from Part III, line 31, on Part II, line 10.
If any qualified education expenses for the student were paid
in 2023 for an academic period beginning in the first 3 months of
2024, treat that academic period as if it began in 2023. See
Adjusted Qualified Education Expenses
Worksheet
completing.
Complete a separate worksheet for each student for each
academic period beginning or treated as beginning (see below)
in 2023 for which you paid (or are treated as having paid)
qualified education expenses in 2023.
1. Total qualified education expenses paid for or
on behalf of the student in 2023 for the
academic period . . . . . . . . . . . . . . . . . .
2. Less adjustments:
a. Tax-free educational
assistance received in 2023
allocable to the academic
period . . . . . . . . . . . .
b. Tax-free educational
assistance received in 2024
(and before you file your
2023 tax return) allocable to
the academic period . . .
c. Refunds of qualified
education expenses paid in
2023 if the refund is
received in 2023 or in 2024
before you file your 2023 tax
return . . . . . . . . . . . . .
3. Total adjustments (add lines 2a, 2b, and
2c) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Adjusted qualified education expenses.
Subtract line 3 from line 1. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . .
8
Instructions for Form 8863 (2023)