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Level 2
Feb 6, 2021 3:41 PM UTC
Solved

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?

    Hal_Al
    Hal_AlAnswer
    Level 15
    Feb 7, 2021 12:32 PM UTC

    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


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

    4 replies

    KathrynG3
    Alumni - Intuit
    Feb 6, 2021 3:59 PM UTC

    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 2
    Feb 6, 2021 4:20 PM UTC

    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
    Alumni - Intuit
    Feb 7, 2021 3:17 AM UTC

    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

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