What is Form 8863 education credit?

Use Form 8863 to figure and claim your education credits, which are based on qualified education expenses paid to an eligible postsecondary educational institution. There are two education credits.

What are qualified education expenses for Form 8863?

Qualified Education Expenses

• Personal expenses. …
• Any course or other education involving sports, games, or hobbies, or any noncredit course, unless such course or other education is part of the student’s degree program or (for the lifetime learning credit only) helps the student acquire or improve job skills.

What does it mean to claim an education credit?

An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC).

How do I claim education credits?

To claim AOTC, you must file a federal tax return, complete the Form 8863 and attach the completed form to your Form 1040 or Form 1040A. Use the information on the Form 1098-T Tuition Statement, received from the educational institution the student attended.

Who qualifies for college tuition credit?

To qualify for the college tuition credit or itemized deduction, you, your spouse, or your dependent(s) must be an undergraduate student enrolled at or attending an institution of higher education and have paid qualified college tuition expenses in 2021. Only expenses for undergraduate enrollment or attendance qualify.

Can I claim education credit without a 1098-T?

Yes. You can still claim an education credit if your school that closed did not provide you a Form 1098-T if: The student and/or the person able to claim the student as a dependent meets all other eligibility requirements to claim the credit.

Why dont I qualify for education tax credit?

Eligibility Requirements

You are pursuing a degree or other recognized credential. You were enrolled at least half-time for at least one academic period beginning in the tax year. You have not yet completed four years of higher education. You have not claimed the AOTC for more than four tax years.

Is tuition deductible in 2021?

For your 2021 taxes, the American Opportunity Tax Credit: Can be claimed in amounts up to $2,500 per student, calculated as 100% of the first $2,000 in college costs and 25% of the next $2,000. May be used toward required course materials (books, supplies and equipment) as well as tuition and fees.