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Department of the Treasury
Internal Revenue Service
2023

Instructions for Form 8863

Education Credits (American Opportunity and Lifetime Learning Credits)

Section references are to the Internal Revenue Code unless may claim an education tax credit. You may include qualified
otherwise noted. tuition and related expenses that are not reported on Form
1098-T when claiming one of the related credits if you can
substantiate payment of these expenses.You may not include
Future Developments expenses paid on the Form 1098-T that have been paid by
For the latest information about developments related to Form qualified scholarships, including those that were not processed
8863 and its instructions, such as legislation enacted after they by the universities.
were published, go to IRS.gov/Form8863. To claim the American opportunity credit, you must
provide the educational institution’s employer
Reminders CAUTION! identification number (EIN) on your Form 8863. You
should be able to get this information from Form 1098-T or the
Limits on modified adjusted gross income (MAGI). The educational institution.
lifetime learning credit and the American opportunity credit MAGI
limits are $180,000 if you're married filing jointly ($90,000 if Ban on claiming the American opportunity credit. If you
you're filing single, head of household, or qualifying surviving claim the American opportunity credit even though you're not
spouse). See Table 1 and the instructions for line 3 or line 14. eligible, you may be banned from claiming the credit depending
Form 1098-T requirement. To be eligible to claim the on your conduct. See the Caution statement under American
American opportunity credit or the lifetime learning credit, the law Opportunity Credit, later.
requires a taxpayer (or a dependent) to have received Form Taxpayer identification number (TIN) needed by due date
1098-T, Tuition Statement, from an eligible educational of return. If you haven’t been issued a TIN by the due date of
institution, whether domestic or foreign. your 2023 return (including extensions), you can’t claim the
However, you may claim one of these education benefits if the American opportunity credit on either your original or an
student doesn't receive a Form 1098-T because the student’s amended 2023 return. Also, the American opportunity credit isn’t
educational institution isn't required to furnish a Form 1098-T to allowed on either your original or an amended 2023 return for a
the student under existing rules (for example, if the student is a student who hasn’t been issued a TIN by the due date of your
qualified nonresident alien, has certain qualified education 2023 return (including extensions).
expenses paid entirely with scholarships, has certain qualified Form 8862 may be required. If your American opportunity
education expenses paid under a formal billing arrangement, or credit was denied or reduced for any reason other than a math or
is enrolled only in courses for which no academic credit is clerical error for any tax year beginning after 2015, you must
awarded). If a student’s educational institution isn't required to attach a completed Form 8862, Information To Claim Certain
provide a Form 1098-T to the student, you may claim one of Credits After Disallowance, to your tax return for the next tax year
these education benefits without a Form 1098-T if you otherwise for which you claim the credit. See Form 8862 and its
qualify, can demonstrate that you (or a dependent) were enrolled instructions for details.
at an eligible educational institution, and can substantiate the
payment of qualified tuition and related expenses.
You may also claim one of these educational benefits if the General Instructions
student attended an eligible educational institution required to
furnish Form 1098-T but the student doesn't receive Form Purpose of Form
1098-T before you file your tax return (for example, if the Use Form 8863 to figure and claim your education credits, which
institution is otherwise required to furnish the Form 1098-T and are based on adjusted qualified education expenses paid to an
doesn't furnish it or refuses to do so) and you take the following eligible educational institution (postsecondary). For 2023, there
required steps: After January 31, 2024, but before you file the are two education credits.
return, you or the student must request that the educational • The American opportunity credit, part of which may be
institution furnish a Form 1098-T. You must fully cooperate with refundable.
the educational institution's efforts to gather the information • The lifetime learning credit, which is nonrefundable.
needed to furnish the Form 1098-T. You must also otherwise
qualify for the benefit, be able to demonstrate that you (or a A refundable credit can give you a refund when the credit is
dependent) were enrolled at an eligible educational institution, more than the tax you owe, even if you aren’t required to file a tax
and substantiate the payment of qualified tuition and related return. A nonrefundable credit can reduce your tax, but any
expenses. excess isn't refunded to you.
The amount of qualified tuition and related expenses reported Both of these credits have different rules that can affect your
on Form 1098-T may not reflect the total amount of the qualified eligibility to claim a specific credit. These differences are shown
tuition and related expenses paid during the year for which you in Table 1.

Nov 14, 2023 Cat. No. 53002G

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Table 1. Comparison of Education Credits for 2023
Caution. You can claim both the American opportunity credit and the lifetime learning credit on the same
return, but not for the same student.

American Opportunity Credit Lifetime Learning Credit
Maximum credit Up to $2,500 credit per eligible student Up to $2,000 credit per return
Limit on modified $180,000 if married filing jointly; $180,000 if married filing jointly;
adjusted gross income $90,000 if single, head of household, or qualifying $90,000 if single, head of household, or qualifying
(MAGI) surviving spouse surviving spouse
Refundable or 40% of credit may be refundable; the rest is Nonrefundable—credit limited to the amount of tax you
nonrefundable nonrefundable must pay on your taxable income
Number of years of Available ONLY if the student had not completed the first Available for all years of postsecondary education and for
postsecondary education 4 years of postsecondary education before 2023 courses to acquire or improve job skills
Number of tax years Available ONLY for tax years per eligible student4 Available for an unlimited number of tax years
credit available
Type of program required Student must be pursuing a program leading to a degree Student doesn't need to be pursuing a program leading
or other recognized education credential to a degree or other recognized education credential
Number of courses Student must be enrolled at least half-time for at least Available for one or more courses
one academic period beginning during 2023 (or the first
3 months of 2024 if the qualified expenses were paid in
2023)
Felony drug conviction As of the end of 2023, the student had not been Felony drug convictions don't make the student ineligible
convicted of a felony for possessing or distributing a
controlled substance
Qualified expenses Tuition, required enrollment fees, and course materials Tuition and required enrollment fees (including amounts
that the student needs for a course of study whether or required to be paid to the institution for course-related
not the materials are bought at the educational institution books, supplies, and equipment)
as a condition of enrollment or attendance
Payments for academic Payments made in 2023 for academic periods beginning in 2023 or beginning in the first 3 months of 2024
periods
TIN needed by filing due Filers and students must have been issued a TIN by the Students must have been issued a TIN by the due date of
date due date of their 2023 return (including extensions) their 2023 return (including extensions)
Educational institution's You must provide the educational institution's employer Educational institution’s employer identification number
EIN identification number (EIN) on your Form 8863 (EIN) is not required on your Form 8863

Who Can Claim an Education Credit Who cannot claim a credit. You cannot claim an education
You may be able to claim an education credit if you, your spouse, credit on a 2023 tax return if any of the following apply.
or a dependent you claim on your tax return was a student 1. You're claimed as a dependent on another person's tax
enrolled at or attending an eligible educational institution. For return, such as your parent's return.
2023, the credits are based on the amount of adjusted qualified 2. Your filing status is married filing separately.
education expenses paid for the student in 2023 for academic 3. You (or your spouse) were a nonresident alien for any part
periods beginning in 2023 or beginning in the first 3 months of of 2023 and didn't elect to be treated as a resident alien for tax
2024. purposes.
Academic period. An academic period is any quarter, 4. Your MAGI is $180,000 or more if married filing jointly; or
semester, trimester, or any other period of study as reasonably $90,000 or more if single, head of household, or qualifying
determined by an eligible educational institution. If an eligible surviving spouse with dependent child.
educational institution uses credit hours or clock hours and
5. The student has not been issued a TIN by the due date of
doesn't have academic terms, each payment period may be
their 2023 return (including extensions).
treated as an academic period. For details, see Academic period
in chapters 2 and 3 of Pub. 970. Generally, your MAGI is the amount on your Form 1040 or
Who can claim a dependent's expenses. If a student is 1040-SR, line 11. However, if you're filing Form 2555, Foreign
claimed as a dependent on another person's tax return, all Earned Income; or Form 4563, Exclusion of Income for Bona
qualified education expenses of the student are treated as Fide Residents of American Samoa; or are excluding income
having been paid by that person. Therefore, only that person can from Puerto Rico, add to the amount on your Form 1040 or
claim an education credit for the student. If a student isn't 1040-SR, line 11, the amount of income you excluded. For
claimed as a dependent on another person's tax return, only the details, see Pub. 970.
student can claim the credit.
American Opportunity Credit
Expenses paid by a third party. Qualified education expenses
paid on behalf of the student by someone other than the student Don't claim the American opportunity credit for 2 years
(such as a relative) are treated as paid by the student. However, ! after there was a final determination that your claim was
qualified education expenses paid (or treated as paid) by a CAUTION due to reckless or intentional disregard of the rules, or 10
student who is claimed as a dependent on your tax return are years after there was a final determination that your claim was
treated as paid by you. Therefore, you're treated as having paid due to fraud.
expenses that were paid by the third party. For more information You may be able to claim a credit of up to $2,500 for adjusted
and an example, see Who Can Claim a Dependent's Expenses qualified education expenses (defined later) paid for each
in Pub. 970, chapters 2 and 3. student who qualifies for the American opportunity credit. This
credit equals 100% of the first $2,000 and 25% of the next

2 Instructions for Form 8863 (2023)

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$2,000 of adjusted qualified education expenses paid for each Because the tuition you paid in 2023 relates to an academic
eligible student. The amount of your credit is gradually reduced period that begins in the first 3 months of 2024, your eligibility to
(phased out) if your MAGI is between $80,000 and $90,000 claim an American opportunity credit in 2023 is determined as if
($160,000 and $180,000 if you file a joint return). You cannot the 2024 spring semester began in 2023. Therefore, you satisfy
claim a credit if your MAGI is $90,000 or more ($180,000 or more this third requirement.
if you file a joint return). 4. As of the end of 2023, the student had not been convicted
If you can choose between using a student's adjusted of a federal or state felony for possessing or distributing a
TIP qualified education expenses for the American controlled substance.
opportunity credit or the lifetime learning credit, the 5. Filers and students must have been issued a TIN by the
American opportunity credit will always be greater than the due date of their 2023 return (including extensions).
lifetime learning credit. 6. The student received Form 1098-T from the educational
institution for 2023 or you followed the procedures under Form
Student qualifications. Generally, you can claim the American 1098-T requirement, earlier.
opportunity credit for a student on a 2023 tax return only if all of
the following seven requirements are met. 7. You must provide the educational institution's employer
identification number (EIN) on your Form 8863.
1. As of the beginning of 2023, the student had not
completed the first 4 years of postsecondary education If the requirements above aren't met for any student, you
(generally, the freshman through senior years of college), as TIP cannot claim the American opportunity credit for that
determined by the eligible educational institution. For this student. You may be able to claim the lifetime learning
purpose, don't include academic credit awarded solely because credit for part or all of that student's qualified education
of the student's performance on proficiency examinations. expenses instead, if certain requirements are met.
2. The American opportunity credit has not been claimed (by
you or anyone else) for this student for any 4 tax years before Lifetime Learning Credit
2023. If the American opportunity credit has been claimed for The lifetime learning credit equals 20% of adjusted qualified
this student for any 3 or fewer tax years before 2023, this education expenses (defined later), up to a maximum of $10,000
requirement is met. of adjusted qualified education expenses per return. Therefore,
Example 1. Sharon was eligible for the American opportunity the maximum lifetime learning credit you can claim on your
credit for 2017, 2018, 2019, and 2022. Sharon’s parents claimed return for the year is $2,000, regardless of the number of
the American opportunity credit for her on their 2017, 2018, and students for whom you paid qualified education expenses. The
2019 tax returns. Sharon claimed the American opportunity amount of your credit is gradually reduced (phased out) if your
credit on her own 2022 tax return. The American opportunity MAGI is between $80,000 and $90,000 ($160,000 and $180,000
credit has been claimed for Sharon for 4 tax years before 2023. if you file a joint return). You cannot claim a credit if your MAGI is
Therefore, the American opportunity credit cannot be claimed $90,000 or more ($180,000 or more if you file a joint return).
for Sharon for 2023. If Sharon was to file Form 8863 for 2023, You cannot claim the lifetime learning credit for any
she would check “Yes” for Part III, line 23, and would be eligible ! student if you claim the American opportunity credit for
to claim only the lifetime learning credit if she meets all other CAUTION that student for the same tax year.
requirements.
Example 2. Wilbert was eligible for the American opportunity Qualified Education Expenses
credit for 2018, 2019, 2020, and 2023. Wilbert’s parents claimed
the American opportunity credit for Wilbert on their tax returns for Generally, qualified education expenses are amounts paid in
2018, 2019, and 2020. No one claimed an American opportunity 2023 for tuition and fees required for the student's enrollment or
credit for Wilbert for any other tax year. The American attendance at an eligible educational institution. It doesn't matter
opportunity credit has been claimed for Wilbert for only 3 tax whether the expenses were paid in cash, by check, by credit or
years before 2023. Therefore, Wilbert meets the second debit card, or with borrowed funds.
requirement to be eligible for the American opportunity credit. If For course-related books, supplies, and equipment, only
Wilbert were to file Form 8863 for 2023, he would check “No” for certain expenses qualify.
Part III, line 23. If Wilbert meets all of the other requirements, he • American opportunity credit: Qualified education expenses
is eligible for the American opportunity credit. include amounts paid for tuition, fees, and course materials,
3. For at least one academic period beginning or treated as which include books, supplies, and equipment needed for a
beginning (see next) in 2023, the student both: course of study, whether or not the materials are purchased from
a. Was enrolled in a program that leads to a degree, the educational institution as a condition of enrollment or
certificate, or other recognized educational credential; and attendance.
• Lifetime learning credit: Qualified education expenses include
b. Carried at least one-half the normal full-time workload for amounts paid for books, supplies, and equipment only if
his or her course of study. required to be paid to the institution as a condition of enrollment
The standard for what is half of the normal full-time workload or attendance.
is determined by each eligible educational institution. However,
the standard may not be lower than any of those established by Qualified education expenses include nonacademic fees,
the U.S. Department of Education under the Higher Education such as student activity fees, athletic fees, or other expenses
Act of 1965. unrelated to the academic course of instruction, only if the fee
must be paid to the institution as a condition of enrollment or
For 2023, you must treat an academic period beginning in the attendance. However, fees for personal expenses (described
first 3 months of 2024 as if it began in 2023 if qualified education below) are never qualified education expenses.
expenses for the student were paid in 2023 for that academic
period. See Prepaid Expenses, later. Qualified education expenses don't include amounts paid for
Example. You enroll on a full-time basis in a degree program the following.
for the 2024 spring semester, which begins in January 2024. You • Personal expenses. This means room and board, insurance,
pay your tuition for the 2024 spring semester in December 2023. medical expenses (including student health fees), transportation,
and other similar personal, living, or family expenses.
Instructions for Form 8863 (2023) 3

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• Any course or other education involving sports, games, or You may be able to increase the combined value of an
hobbies, or any noncredit course, unless such course or other TIP education credit if the student includes some or all of a
education is part of the student's degree program or (for the scholarship or fellowship grant in income in the year it is
lifetime learning credit only) helps the student acquire or improve received.
job skills.
Generally, any scholarship or fellowship grant is treated as
You may receive Form 1098-T from the institution reporting tax-free educational assistance. However, a scholarship or
payments received in 2023 (box 1). However, the amount in fellowship grant isn't treated as tax-free educational assistance
box 1 of Form 1098-T may be different from the amount you paid to the extent the student includes it in gross income (the
(or are treated as having paid). In completing Form 8863, use student may or may not be required to file a tax return) for the
only the amounts you actually paid (plus any amounts you're year the scholarship or fellowship grant is received and either:
treated as having paid) in 2023 (reduced, as necessary, as • The scholarship or fellowship grant (or any part of it) must be
described under Adjusted Qualified Education Expenses, later). applied (by its terms) to expenses (such as room and board)
See chapters 2 and 3 of Pub. 970 for more information on Form other than qualified education expenses, or
1098-T. • The scholarship or fellowship grant (or any part of it) may be
applied (by its terms) to expenses (such as room and board)
Qualified education expenses paid on behalf of the student by other than qualified education expenses.
someone other than the student (such as a relative) are treated A student cannot choose to include in income a
as paid by the student. Qualified education expenses paid (or ! scholarship or fellowship grant provided by an Indian
treated as paid) by a student who is claimed as a dependent on CAUTION tribal government that is excluded from income under
your tax return are treated as paid by you. the Tribal General Welfare Exclusion Act of 2014 or benefits
If you or the student takes a deduction for higher education provided by an educational program described in section 5.02(2)
expenses, such as on Schedule C (Form 1040), you cannot use (b)(ii) of Rev. Proc. 2014-35, available at IRS.gov/irb/
those same expenses in your qualified education expenses 2014-26_IRB#RP-2014-35.
when figuring your education credits.
Coordination with Pell grants and other scholarships or fel-
Any qualified expenses used to figure the education lowship grants. You may be able to increase an education
! credits cannot be taken into account in determining the credit and reduce your total tax or increase your tax refund if the
CAUTION amount of a distribution from a Coverdell ESA or a student (you, your spouse, or your dependent) chooses to
qualified tuition program (section 529 plan) that is excluded from include all or part of certain scholarships or fellowship grants in
gross income. See Pub. 970, chapters 6 and 7, for more income. The scholarship or fellowship grant must be one that
information. may qualify as a tax-free scholarship under the rules discussed
in chapter 1 of Pub. 970. Also, the scholarship or fellowship grant
Prepaid Expenses must be one that may (by its terms) be used for expenses other
than qualified education expenses (such as room and board).
Qualified education expenses paid in 2023 for an academic
period that begins in the first 3 months of 2024 can be used in The fact that the educational institution applies the
figuring an education credit for 2023 only. For example, if you pay scholarship or fellowship grant to qualified education expenses
$2,000 in December 2023 for qualified tuition for the 2024 winter (such as tuition and related fees) doesn't prevent the student
quarter that begins in January 2024, you can use that $2,000 in from choosing to apply certain scholarships or fellowship grants
figuring an education credit for 2023 only (if you meet all the to other expenses (such as room and board). By choosing to do
other requirements). so, the student will include the part applied to other expenses
(such as room and board) in gross income and may be required
You cannot use any amount you paid in 2022 or 2024 to to file a tax return. However, this allows payments made in cash,
! figure the qualified education expenses you use to figure by check, by credit or debit card, or with borrowed funds, such
CAUTION your 2023 education credit(s). as a student loan, to be applied to qualified education expenses.
These payments, unlike certain scholarships or fellowship
Adjusted Qualified Education grants, won't reduce the qualified education expenses available
to figure an education credit. The result is generally a larger
Expenses education credit that reduces your total tax or increases your tax
For each student, reduce the qualified education expenses paid refund.
in 2023 by or on behalf of that student under the following rules. Example 1. Last year, your child graduated from high school
The result is the amount of adjusted qualified education and enrolled in college for the fall semester. You and your child
expenses for each student. meet all other requirements to claim the American opportunity
Tax-free educational assistance. For tax-free educational credit, and you need to determine adjusted qualified education
assistance received in 2023, reduce the qualified education expenses to figure the credit.
expenses for each academic period by the amount of tax-free Your child has $5,000 of qualified education expenses and
educational assistance allocable to that academic period. See $4,000 of room and board. Your child received a $5,000 Pell
Academic period, earlier. grant and took out a $2,750 student loan to pay these expenses.
Tax-free educational assistance includes: You paid the remaining $1,250. The Pell grant by its terms may
be used for any of these expenses.
1. The tax-free part of any scholarship or fellowship grant
(including Pell grants); If you and your child choose to apply the Pell grant to the
qualified education expenses, it will qualify as a tax-free
2. The tax-free part of any employer-provided educational scholarship under the rules discussed in chapter 1 of Pub. 970.
assistance; Your child won't include any part of the Pell grant in gross
3. Veterans' educational assistance; and income. After reducing qualified education expenses by the
4. Any other educational assistance that is excludable from tax-free scholarship, you will have $0 ($5,000 − $5,000) of
gross income (tax free), other than as a gift, bequest, devise, or adjusted qualified education expenses available to figure your
inheritance. credit. Your credit will be $0.

4 Instructions for Form 8863 (2023)

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Example 2. The facts are the same as in Example 1. If, Refunds received after 2023 and after your income tax
unlike in Example 1, you and your child choose to apply only return is filed. If anyone receives a refund after 2023 of
$1,000 of the Pell grant to the qualified education expenses and qualified education expenses paid on behalf of a student in 2023
to apply the remaining $4,000 to room and board, only $1,000 and the refund is received after you file your 2023 income tax
will qualify as a tax-free scholarship. return, you may need to repay some or all of the credit that you
Your child will include the $4,000 applied to room and board claimed. See Credit recapture next.
in gross income, and it will be treated as earned income for Credit recapture. If any tax-free educational assistance for the
purposes of determining whether your child is required to file a qualified education expenses paid in 2023, or any refund of your
tax return. If the $4,000 is your child’s only income, your child qualified education expenses paid in 2023, is received after you
won't be required to file a tax return. file your 2023 income tax return, you must recapture (repay) any
After reducing qualified education expenses by the tax-free excess credit. You do this by refiguring the amount of your
scholarship, you will have $4,000 ($5,000 − $1,000) of adjusted adjusted qualified education expenses for 2023 by reducing the
qualified education expenses available to figure your credit. Your expenses by the amount of the refund or tax-free educational
refundable American opportunity credit will be $1,000. Your assistance. You then refigure your education credit(s) for 2023
nonrefundable credit may be as much as $1,500, but depends and figure the amount by which your 2023 tax liability would have
on your tax liability. increased if you had claimed the refigured credit(s). Include that
If you're not otherwise required to file a tax return, you should amount as an additional tax for the year the refund or tax-free
file to get a refund of your $1,000 refundable credit, but your tax assistance was received.
liability and nonrefundable credit will be $0. Example. You paid $8,000 tuition and fees in December
2023 for your child's spring semester beginning in January 2024.
Note. The result may be different if your child has other income
You filed your 2023 tax return on February 2, 2024, and claimed
or if you're the student. If you're the student and you claim the
a lifetime learning credit of $1,600 ($8,000 qualified education
earned income credit, choosing not to apply a Pell grant to
expense paid x 20% (0.20)). You claimed no other tax credits.
qualified education expenses may decrease your earned income
After you filed your return, your child withdrew from two courses
credit at certain income levels by increasing your adjusted gross
and you received a refund of $1,400. You must refigure your
income. For details and more examples, see Pub. 970.
2023 lifetime learning credit using $6,600 ($8,000 qualified
Unlike a scholarship or fellowship grant, a tax-free education expenses − $1,400 refund). The refigured credit is
TIP distribution from a Coverdell ESA or qualified tuition $1,320 and your tax liability increased by $280. You must include
program (section 529 plan) can be applied to either the difference of $280 ($1,600 credit originally claimed − $1,320
qualified education expenses or certain other expenses (such as refigured credit) as additional tax on your 2024 income tax
room and board) without creating a tax liability for the student. return. See the instructions for your 2024 income tax return to
An education credit can be claimed in the same year the determine where to include this tax.
beneficiary takes a tax-free distribution from a Coverdell ESA or
If you paid qualified education expenses in both 2023
qualified tuition program, as long as the same expenses aren't
and 2024 for an academic period that begins in the first
used for both benefits. For details, see Pub. 970, chapters 6 and TIP
3 months of 2024 and you receive tax-free educational
7.
assistance, or a refund, as described above, you may choose to
Tax-free educational assistance treated as a refund. Some reduce the qualified education expenses you paid in 2024
tax-free educational assistance received after 2023 may be instead of reducing the qualified education expenses you paid in
treated as a refund of qualified education expenses paid in 2023. 2023.
This tax-free educational assistance is any tax-free educational
assistance received by you or anyone else after 2023 for Eligible Educational Institution
qualified education expenses paid on behalf of a student in 2023 An eligible educational institution is generally any accredited
(or attributable to enrollment at an eligible educational institution public, nonprofit, or proprietary (private) college, university,
during 2023). vocational school, or other postsecondary institution. Also, the
If this tax-free educational assistance is received after 2023, institution must be eligible to participate in a student aid program
but before you file your 2023 income tax return, see Refunds administered by the Department of Education. Virtually all
received after 2023, but before your income tax return is filed, accredited postsecondary institutions meet this definition.
later. If this tax-free educational assistance is received after 2023 An eligible educational institution also includes certain
and after you file your 2023 income tax return, see Refunds educational institutions located outside the United States that
received after 2023 and after your income tax return is filed, later. are eligible to participate in a student aid program administered
Refunds. A refund of qualified education expenses may reduce by the Department of Education.
qualified education expenses for the tax year or may require you The educational institution should be able to tell you if it
to repay (recapture) the credit that you claimed in an earlier year. TIP is an eligible educational institution.
Some tax-free educational assistance received after 2023 may
be treated as a refund. See Tax-free educational assistance,
earlier.
Additional Information
Refunds received in 2023. For each student, figure the
adjusted qualified education expenses for 2023 by adding all the See Pub. 970, chapters 2 and 3, for more information about
qualified education expenses paid in 2023 and subtracting any these credits.
refunds of those expenses received from the eligible educational
institution during 2023.
Refunds received after 2023, but before your income tax Specific Instructions
return is filed. If anyone receives a refund after 2023 of You must complete a separate Part III on page 2 for
qualified education expenses paid on behalf of a student in 2023 ! each individual for whom you're claiming either
and the refund is received before you file your 2023 income tax CAUTION credit before you complete Parts I and II.
return, reduce the amount of qualified education expenses for
2023 by the amount of the refund.

Instructions for Form 8863 (2023) 5

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Part I—Refundable American                                           If yes, go to question 6.
                                                                     6. Were either of your parents alive at the end of 2023?
Opportunity Credit                                                   If no, stop here; you do qualify to claim part of your allowable 
                                                                     American opportunity credit as a refundable credit.
Line 1                                                               If yes, go to question 7.
Enter the amount from Part III, line 30. If you're claiming the      7. Are you filing a joint return for 2023?
American opportunity credit for more than one student, add the 
amounts from each student's Part III, line 30, and enter the total   If no, you don't qualify to claim part of your allowable 
for those students on line 1.                                        American opportunity credit as a refundable credit.
                                                                     If yes, you do qualify to claim part of your allowable 
Line 3                                                               American opportunity credit as a refundable credit.
Enter your MAGI. Generally, your MAGI is the amount on your                 The educational institution's EIN must be provided on 
Form 1040 or 1040-SR, line 11. However, if you're filing Form        !      line 22(4) if the American opportunity credit is claimed 
2555, or Form 4563, or are excluding income from Puerto Rico,       CAUTION for this student.
you must include on line 3 the amount of income you excluded. 
For details, see Pub. 970.                                          Earned income. Earned income includes wages, salaries, 
                                                                    professional fees, and other payments received for personal 
Line 7                                                              services actually performed. Earned income includes the part of 
If you were under age 24 at the end of 2023 and the conditions      any scholarship or fellowship grant that represents payment for 
listed below apply to you, you cannot claim any part of the         teaching, research, or other services performed by the student 
American opportunity credit as a refundable credit on your tax      that are required as a condition for receiving the scholarship or 
return. Instead, you can claim your allowed credit, figured in Part fellowship grant. Earned income doesn't include that part of the 
II, only as a nonrefundable credit to reduce your tax.              compensation for personal services rendered to a corporation 
                                                                    which represents a distribution of earnings or profits rather than 
  You don't qualify for a refundable American opportunity credit    a reasonable allowance as compensation for the personal 
if 1 (a, b, or c), 2, and 3 below apply to you.                     services actually rendered.
                                                                     If you're a sole proprietor or a partner in a trade or business in 
1. You were:                                                        which both personal services and capital are material 
                                                                    income-producing factors, earned income also includes a 
  a. Under age 18 at the end of 2023, or                            reasonable allowance for compensation for personal services, 
  b. Age 18 at the end of 2023 and your earned income               but not more than 30% of your share of the net profits from that 
  (defined later) was less than one-half of your support            trade or business (after subtracting the deduction for one-half of 
  (defined later), or                                               self-employment tax). However, if capital isn't an 
  c. Over age 18 and under age 24 at the end of 2023 and a          income-producing factor and your personal services produced 
  full-time student (defined later) and your earned income          the business income, the 30% limit doesn't apply.
  (defined later) was less than one-half of your support            Support. Support includes food, shelter, clothing, medical and 
  (defined later).                                                  dental care, education, and the like. Generally, the amount of an 
2. At least one of your parents was alive at the end of 2023.       item of support will be the amount of expenses paid by the one 
3. You're not filing a joint return for 2023.                       furnishing such item. If the item of support is in the form of 
                                                                    property or lodging, measure the amount of such item of support 
                                                                    by its fair market value. To figure your support, count support 
                                                                    provided by you, your parents, and others. However, a 
  If you meet these conditions, check the box next to line 7, skip  scholarship received by you isn't considered support if you were 
line 8, and enter the amount from line 7 on line 9. If these        a full-time student (defined next) for 2023.
conditions don't apply to you, complete line 8.
                                                                    Full-time student. Solely for purposes of determining whether 
  You can answer the following questions to determine whether       a scholarship is considered support, you were a full-time student 
you qualify for a refundable American opportunity credit.           for 2023 if during any part of any 5 calendar months during the 
  1. Were you under age 24 at the end of 2023?                      year you were enrolled as a full-time student at an eligible 
                                                                    educational institution (defined earlier), or took a full-time, 
  If no, stop here; you do qualify to claim part of the allowable   on-farm training course given by such an institution or by a state, 
  American opportunity credit as a refundable credit.               county, or local government agency.
  If yes, go to question 2.
  2. Were you over age 18 at the end of 2023?                       Part II—Nonrefundable Education 
  If yes, go to question 3.                                         Credits
  If no, go to question 4.
  3. Were you a full-time student (defined later) for 2023?         Line 9
  If no, stop here; you do qualify to claim part of your allowable  Enter the amount from line 9 on the Credit Limit Worksheet, 
  American opportunity credit as a refundable credit.               line 2, later.
  If yes, go to question 5.
  4. Were you age 18 at the end of 2023?                            Line 10
  If yes, go to question 5.                                         Enter the amount from Part III, line 31. If you're claiming the 
  If no, go to question 6.                                          lifetime learning credit for more than one student, add the 
                                                                    amounts from each student's Part III, line 31, and enter the total 
  5. Was your earned income (defined later) less                    for all those students on line 10.
  than one-half of your support (defined later) for 2023?
  If no, stop here; you do qualify to claim part of your allowable 
  American opportunity credit as a refundable credit.

6                                                                                              Instructions for Form 8863 (2023)

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Line 14 Follow the country's practice for entering the postal code and
Generally, your MAGI is the amount on your Form 1040 or name of the province, county, or state.
1040-SR, line 11. However, if you're filing Form 2555, or Form The educational institution's EIN must be provided on
4563, or are excluding income from Puerto Rico, you must line 22(4) if the American opportunity credit is claimed for this
include on line 14 the amount of income you excluded. For student.
details, see Pub. 970.
Line 23
Line 18 If the American opportunity credit has been claimed for this
Enter the amount from line 18 on the Credit Limit Worksheet, student for any 4 tax years before 2023, the American
line 1, later. opportunity credit cannot be claimed for this student for 2023.
Check “Yes” and go to line 31.
Line 19
Enter the amount from line 7 of the Credit Limit Worksheet here If the American opportunity credit has been claimed for this
and on Schedule 3 (Form 1040), line 3. student for 3 or fewer prior tax years, check “No.” See Student
qualifications, earlier.

Credit Limit Worksheet Line 24
Complete this worksheet to figure the amount to enter on Check “Yes” if the student enrolled at least half-time for at least
line 19. one academic period that began or is treated as having begun
1. Enter the amount from Form 8863, (see below) in 2023 at an eligible educational institution in a
line 18 . . . . . . . . . . . . . . . . . . . . . 1. program leading towards a postsecondary degree, certificate, or
2. Enter the amount from Form 8863, other recognized postsecondary educational credential.
line 9 . . . . . . . . . . . . . . . . . . . . . . 2. Otherwise, check “No.”
3. Add lines 1 and 2 . . . . . . . . . . . . . . 3.
If any qualified education expenses for the student were paid
4. Enter the amount from: in 2023 for an academic period beginning in the first 3 months of
Form 1040 or 1040-SR, line 18 2024, treat that academic period as if it began in 2023. See
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Student qualifications and Prepaid Expenses, earlier.
5. Enter the total of your credits from: If you checked “Yes,” go to line 25. If you checked “No,” the
Schedule 3 (Form 1040), lines 1, 2, 6d student isn't eligible for the American opportunity credit; skip
and 6l lines 25 through 30 and go to line 31.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Line 25
6. Subtract line 5 from line 4 . . . . . . . . . 6. Check “Yes” if the student completed the first 4 years of
7. Enter the smaller of line 3 or line 6 here postsecondary education before 2023. Otherwise, check “No.”
and on Form 8863, line 19 . . . . . . . . 7. A student has completed the first 4 years of postsecondary
education before 2023 if the educational institution has awarded
the student 4 years of academic credit at that institution for
You must complete Part III for each student for whom postsecondary coursework the student completed before 2023.
Disregard any academic credit awarded solely on the basis of
! you're claiming either the American opportunity credit or the student's performance on proficiency examinations.
CAUTION lifetime learning credit before you complete either Part I
or Part II. Use additional copies of page 2 as needed for each If you checked “No,” go to line 26. If you checked “Yes,” the
student. student isn't eligible for the American opportunity credit; skip
lines 26 through 30 and go to line 31.
Part III—Student and Educational
Line 26
Institution Information
Check “Yes” if the student was convicted, before the end of
Line 20 2023, of a federal or state felony for possession or distribution of
a controlled substance.
Enter the student's name as shown on page 1 of your tax return.
If you checked “No,” complete lines 27 through 30 for this
Line 21 student. If you checked “Yes,” the student isn't eligible for the
Enter the student’s social security number (or other TIN, if American opportunity credit; skip lines 27 through 30 and go to
applicable) as shown on page 1 of your tax return. line 31.
You cannot claim the American opportunity credit and
Line 22 ! the lifetime learning credit for the same student in the
If the student attended only one educational institution, enter the CAUTION same year. If you complete lines 27 through 30 for this
information about the institution and answer the questions about student, don't complete line 31.
Form 1098-T in column (a). If the student attended a second
educational institution, enter the information and answers for the American Opportunity Credit
second educational institution in column (b). If the student
attended more than two educational institutions, attach an Line 27
additional page 2 completed only through line 22.
Enter the student's adjusted qualified education expenses for
If the educational institution has a foreign address, enter the line 27. See Qualified Education Expenses, earlier. Use the
foreign address here and don't abbreviate the country name. Adjusted Qualified Education Expenses Worksheet, later, to
figure each student's adjusted qualified education expenses.
Instructions for Form 8863 (2023) 7

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Don't enter more than $4,000. Enter the total of all amounts from         If you're claiming an education credit for more than one 
all Parts III, line 30, on Part I, line 1.                        !       student, complete a separate Part III for each student 
                                                                  CAUTION before returning to page 1 to complete Parts I and II.
Lifetime Learning Credit
                                                                  If any qualified education expenses for the student were paid 
Line 31                                                           in 2023 for an academic period beginning in the first 3 months of 
Enter the student's adjusted qualified education expenses on      2024, treat that academic period as if it began in 2023. See 
line 31. See Qualified Education Expenses, earlier. Use the       Student qualifications and Prepaid Expenses, earlier.
Adjusted Qualified Education Expenses Worksheet next to figure 
each student's adjusted qualified education expenses. Enter the 
total of all amounts from Part III, line 31, on Part II, line 10.

Adjusted Qualified Education Expenses 
Worksheet
See Qualified Education Expenses, earlier, before 
completing.

Complete a separate worksheet for each student for each 
academic period beginning or treated as beginning (see below) 
in 2023 for which you paid (or are treated as having paid) 
qualified education expenses in 2023.
1. Total qualified education expenses paid for or 
   on behalf of the student in 2023 for the 
   academic period      . . . . . . . . . . . . . . . . . .    
2. Less adjustments:
   a. Tax-free educational 
      assistance received in 2023 
      allocable to the academic 
      period    . . . . . . . . . . . .      
   b. Tax-free educational 
      assistance received in 2024 
      (and before you file your 
      2023 tax return) allocable to 
      the academic period         . . .      
   c. Refunds of qualified 
      education expenses paid in 
      2023 if the refund is 
      received in 2023 or in 2024 
      before you file your 2023 tax 
      return . . . . . . . . . . . . .       
3. Total adjustments (add lines 2a, 2b, and 
   2c). . . . . . . . . . . . . . . . . . . . . . . . . . . .  
4. Adjusted qualified education expenses. 
   Subtract line 3 from line 1. If zero or less, 
   enter -0- . . . . . . . . . . . . . . . . . . . . . . . .   

8                                                                                            Instructions for Form 8863 (2023)

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