Form 8863 (Education Credits)

Form 8863 (Education Credits) is an IRS tax form used to claim education-related tax credits. Key points include:

1. Used to claim two types of education credits:

   – American Opportunity Credit (up to $2,500 per eligible student)

   – Lifetime Learning Credit (up to $2,000 per tax return)

2. Eligibility based on:

   – Qualified education expenses

   – Income limits

   – Enrollment status

3. Requires information such as:

   – Student’s personal details

   – Educational institution information

   – Qualified expenses paid

4. Can be used for yourself, spouse, or dependents

5. Credits are subtracted directly from your tax liability

This form helps reduce the cost of higher education by providing tax benefits. It’s important to carefully review eligibility requirements and keep accurate records of educational expenses. The credits can significantly lower your tax bill or increase your refund. However, you can only claim one type of education credit per student per year, so it’s crucial to determine which credit is most beneficial for your situation.