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Formulaire 8863 Instructions

Instructions pour le formulaire 8863, Crédits d'éducation (Crédits d'opportunité et d'apprentissage à vie américains)

Rév. 2023

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  • Formulaire 8863 - Crédits d'éducation (Crédits d'opportunité et d'apprentissage à vie américains)
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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  
were published, go to IRS.gov/Form8863.  
To claim the American opportunity credit, you must  
provide the educational institution’s employer  
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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  
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  
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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  
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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  
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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  
period. See Prepaid Expenses, later.  
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.  
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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  
described under Adjusted Qualified Education Expenses, later).  
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  
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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.  
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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  
be treated as a refund. See Tax-free educational assistance,  
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  
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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  
student for 3 or fewer prior tax years, check “No.See Student  
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  
line 27. See Qualified Education Expenses, earlier. Use the  
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  
line 31. See Qualified Education Expenses, earlier. Use the  
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  
See Qualified Education Expenses, earlier, before  
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)