Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits) 2021

Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits) 2021

Summary: This is an example of Form 8863 (2019) as pertains to the description in the text. The line items completed are:

"Name(s) shown on return"field contains Dave and Valerie Jones
"Your social security number"field contains 001–00–0000
Under"Caution: Complete a separate Part III on page 2 for each student for whom you are claiming either credit before you complete Parts I and II":
"Part I: Refundable American opportunity credit"
"−Q>1. After completing Part III for each student, enter the total of all amounts from all Parts III, line 30"field contains 2,500
"-Q>2. Enter: $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er)"field contains 180,000
"Q>3. Enter the amount from Form 1040 or 1040-SR, line 8b. If you are filing Form 2555, or 4563, or you are excluding income from Puerto Rice, see Pub. 970 for the amount to enter"field contains 126,000
"Q>4. Subtract line 3 from line 2. If zero or less, stop; you cannot take any education credit"field contains 54,000
"Q>5. Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er)"field contains 20,000
"Q>6. If line 4 is:"

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

  • Less than line 5, divide line 4 by line 5. Enter the result as a decimal (rounded to at least three places"field contains 1.000"

"Q>7. Multiply line 1 by line 6. Caution: if you are under age 24 at the end of the year and meet the conditions described in the instructions, you can’t claim the refundable American opportunity credit. Skip line 8, enter the amount from line 7 on line 9, and check this box"field contains 2,500
"Q>8. Refundable American opportunity credit. Multiply line 7 by 40% (0.40). Enter the amount here and on Form 1040 or 1040-SR, line 18c. Then go on to line 9 below"field contains 1,000
Under" Part II: Nonrefundable Education Credits"
"Q>9. Subtract line 8 form line 7. Enter here and on line 2 of the Credit Limit Worksheet (see instructions)"field contains 1,500
"Q>10. After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter –0– on line 18, and go to line 19"field contains 7,000
"Q>11. Enter the smaller of line 10 or $10,000"field contains 7,000
"Q>12. Multiply line 11 by 20% (0.20)"field contains 1,400
"Q>13. Enter: $136,000 if married filing jointly; $68,000 if single, head of household, or qualifying widow(er)"field contains 136,000
"Q>14. Enter the amount from Form 1040 or 1040-SR, line 8b. If you are filing Form 2555, or Form 4563, or you are excluding income from Puerto Rice, see Pub. 970 for the amount to enter"field contains 126,000
"Q>15. Subtract line 14 from line 13. If zero or less, skip lines 16 and 17, enter -0– on line 18, and go to line 19"field contains 10,000
"Q>16. Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er)"field contains 20,000
"Q>17. If line 15 is:"

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

  • Less than line 16, divide line 15 by line 16. Enter the result as a decimal (rounded to at least three places)"field contains .500"

"Q. 18. Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet (see instructions)"field contains 700
"Q>19. Nonrefundable education credits. Enter the amount from line 7 of the Credit Limit Worksheet (see instructions) here and on Schedule 3 (Form 1040 or 1040-SR), line 3."field contains 1,003