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Level 1
posted Feb 6, 2021 7:41:22 AM

8863 vs 8917

tuition summary says, not qualified for American Opportunity credit, but still uses form 8863. What's wrong with program, and how do I fix it?

0 4 1800
1 Best answer
Level 15
Feb 7, 2021 4:32:53 AM
4 Replies
Expert Alumni
Feb 6, 2021 7:59:48 AM

Form 8863 is used to calculate education credits. It is used for both the American Opportunity Tax Credit and the Lifetime Learning Credit. The Lifetime Learning Credit offers 20% credit for the first $10,000 of qualifying education expenses.

 

Regarding Form 8917 for the Tuition and Fees Deduction, this is calculated "above-the-line," which reduces income. The adjusted income is eventually taxed. In contrast, the credit is subtracted directly from taxes owed.

 

For more details, see:

Lowdown about education credits

 

Level 1
Feb 6, 2021 8:20:02 AM

Why is it marked in my Tuition Summary, that I don't qualify for the American Opportunity Credit, but still use form 8863? Life Time and Tuition deduction are both marked YES.

Expert Alumni
Feb 6, 2021 7:17:20 PM

There are different requirements for the American Opportunity Tax Credit versus the Lifetime Learners or Tuition and Fees deduction. 

Perhaps you took the AOTC 4 times already, or you are not an at least half-time student. 

 

Link to compare the education credits

Level 15
Feb 7, 2021 4:32:53 AM