How to Prepare Tax Schedule 8863

You or your spouse may qualify for education tax credits if either of you were a student at an eligible educational institution. This tax credit is based on the amount of your expenses paid for being a student. Follow these steps to learn how to prepare tax schedule 8863.

Instructions

1. Complete Part 1, the Hope Credit, for each student who attended an eligible educational institution, which is usually any accredited public or private college, university or vocational school. Make sure to input the student's name exactly as it appears on Page 1 of your tax return.

2. Total up column f and enter it in line 2. If you're claiming the Lifetime Learning Credit for a separate student(s) then go to Part 2, or just move on to Part 3.

3. Enter the information on line 3, Part 2 for each student for whom you're claiming the Lifetime Learning Credit. If there are more than 3 students that you wish to claim the credit for then write in "See Attached" next to line 3 and attach a paper with the required information for the remainder of the students. Input the names exactly as they appear on Page 1 of your tax return.

4. Add together lines 6a and 6b and enter in line 6c. Move on to Part 3.

5. Input the information on lines 7 through 16 in Part 3. Enter the smaller number between lines 13 and 16 on line 17. Input this information on form 1040, line 50 or form 1040A, line 31.

Tips & Warnings

• Refer to the instruction sheet for tax schedule 8863 for information on the qualified expenses.

• You can't claim the Hope Learning Credit and the Lifetime Learning credit for the same person in the same year.