8863 vs 8917

Forum|Forum|5 years ago
February 6, 2021
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tuition summary says, not qualified for American Opportunity credit, but still uses form 8863. What's wrong with program, and how do I fix it?

Best answer by Hal_Al

There are different requirements for the American Opportunity Tax Credit versus the Lifetime Learners or Tuition and Fees deduction.

Perhaps you took the AOTC 4 times already, or you are not an at least half-time student.

Link to compare the education credits

Try this IRS tool https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

KathrynG3

Form 8863 is used to calculate education credits. It is used for both the American Opportunity Tax Credit and the Lifetime Learning Credit. The Lifetime Learning Credit offers 20% credit for the first $10,000 of qualifying education expenses.

Regarding Form 8917 for the Tuition and Fees Deduction, this is calculated "above-the-line," which reduces income. The adjusted income is eventually taxed. In contrast, the credit is subtracted directly from taxes owed.

For more details, see:

Lowdown about education credits

aaroncorpusAuthor

Why is it marked in my Tuition Summary, that I don't qualify for the American Opportunity Credit, but still use form 8863? Life Time and Tuition deduction are both marked YES.