topic Re: 8863 vs 8917 in Education

8863 vs 8917

aaroncorpus — Sat, 06 Feb 2021 15:41:22 GMT

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?

Re: 8863 vs 8917

KathrynG3 — Sat, 06 Feb 2021 15:59:48 GMT

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

Re: 8863 vs 8917

aaroncorpus — Sat, 06 Feb 2021 16:20:02 GMT

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.

Re: 8863 vs 8917

KrisD15 — Sun, 07 Feb 2021 03:17:20 GMT

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

Re: 8863 vs 8917

Hal_Al — Sun, 07 Feb 2021 12:32:53 GMT

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