Desktop: Form 8863 - Education Credits – Support

The American Opportunity Credit and the Lifetime Learning Credit are available to provide tax relief to taxpayers either seeking higher learning opportunities for themselves or their dependents. Form 8863 is used to figure and claim the taxpayer's education credits. These credits are based on adjusted qualified education expenses paid to an eligible postsecondary educational institution and are also limited based on the taxpayer's Modified Adjusted Gross Income (MAGI).

For detailed information and a comparison of the credits, refer to the IRS instructions for Form 8863, Education Credits.

Eligible Educational Institution

Form 8863 requires the educational institution's EIN be entered. If the school hasn't got an EIN, they are not an eligible educational institution.

Generally, to be eligible to claim the American opportunity credit or lifetime learning credit, the law requires a taxpayer (or a dependent) to have received Form 1098-T from an eligible educational institution, whether domestic or foreign.

However, the credit can be claimed if the student doesn't receive a Form 1098-T because the student's educational institution isn't required to furnish a Form 1098-T to the student under existing rules. If a student's educational institution isn't required to provide Form 1098-T to the student, the credit can be claimed (a) if the student otherwise qualifies, (b) can demonstrate that they were enrolled at an eligible educational institution, and (c) can substantiate the payment of qualified tuition and related expenses.

Completing Form 8863

To complete Form 8863 in TaxSlayer Pro, from the Main Menu of the tax return (Form 1040) select:

Credits
Education Credits
Edit Qualifying Students Information - Click New and select the individual in the return who is the qualifying student.
Did the student receive a 1098-T for 20xx? - Answer Yes or No as appropriate.
Enter the institution's EIN, name, and address. This information is required irrespective of whether or not Form 1098-T was received.
Evaluate the two check boxes regarding the Form 1098-T. When finished, click Ok.
Select the education credit being claimed, whether the American Opportunity Credit or the Lifetime Learning Credit.
Select Qualified Expenses and enter the amounts for expenses as well as for scholarships, grants, and any other educational assistance received.
Answer the four Yes/No questions.