8863 vs 8917

[aaroncorpus]

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?

[KathrynG3]

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

[aaroncorpus]

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.

[KrisD15]

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

[Hal_Al · Accepted solution]

Try this IRS tool https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit