8863: Education Credits (2024)

Who files this form

Use Form 8863 to figure and claim the 2024 American opportunity credit or lifetime learning credit. You may qualify if you, your spouse, or a dependent you claim attended an eligible postsecondary educational institution.

The credits are based on adjusted qualified education expenses paid in 2024 for academic periods beginning in 2024 or in the first 3 months of 2025.

You cannot claim either credit if:

• Someone else claims you as a dependent.
• You file as married filing separately.
• You or your spouse were a nonresident alien during any part of 2024 and did not elect to be treated as a resident alien for tax purposes.
• Your modified adjusted gross income (MAGI) is $180,000 or more if married filing jointly, or $90,000 or more if single, head of household, or qualifying surviving spouse.
• The student was not issued a taxpayer identification number (TIN) by the due date of their 2024 return, including extensions.

If you claim a student as your dependent, only you can claim an education credit for that student. If no one claims the student as a dependent, only the student can claim the credit. Each credit also has its own eligibility requirements.

When it's due

For the 2024 tax year, if the school was required to provide Form 1098-T but you have not received it before filing, you or the student must request it after January 31, 2025, but before filing the return. You must also cooperate with the school, otherwise qualify for the credit, and be able to substantiate enrollment and payment of qualified expenses.

The supplied text does not print a calendar date for filing the 2024 return.

What you'll need

Have the following information available:

• Form 1040 or 1040-SR and Schedule 3, including the income, tax, and credit amounts used by Form 8863 and its Credit Limit Worksheet.
• Each student's name and Social Security number or other applicable TIN, as shown on your return.
• School names and addresses, plus their employer identification numbers (EINs) when required. The form requires an EIN when claiming the American opportunity credit or answering “Yes” to either Form 1098-T question on line 22.
• Form 1098-T for 2024, if received, and information about any 2023 Form 1098-T with box 7 checked. Exceptions to the Form 1098-T requirement apply under the instructions.
• Records supporting qualified expenses paid in 2024, along with scholarships, other tax-free educational assistance, and refunds needed to calculate adjusted expenses.
• Student eligibility information, including enrollment, prior years of American opportunity credit claims, and whether the first 4 years of postsecondary education were completed before 2024.

You may also need Form 8862 if your American opportunity credit was previously denied or reduced for a reason other than a math or clerical error for a tax year beginning after 2015.

How to file

1. Complete a separate Part III for each student before completing Parts I and II. Use additional copies of page 2 as needed.
2. Use the Adjusted Qualified Education Expenses Worksheet to figure each student's expenses. Complete the applicable credit calculations and the Credit Limit Worksheet.
3. Enter the refundable American opportunity credit from line 8 on Form 1040 or 1040-SR, line 29. Enter the nonrefundable education credits from line 19 on Schedule 3 (Form 1040), line 3.
4. Attach Form 8863 to Form 1040 or 1040-SR.

If a student attended more than two institutions, attach an additional page 2 completed only through line 22.

The supplied text does not give a mailing address or e-filing instructions. For instructions and the latest information, visit IRS.gov/Form8863.

Common mistakes

• Completing page 1 first. Complete a separate Part III for every student before Parts I and II.
• Claiming both credits for the same student. You may claim both on one return, but not for the same student in the same year.
• Treating Form 1098-T as the complete expense total. The instructions remind you that it may not reflect all qualifying payments. Substantiate additional expenses and do not include expenses paid by qualified scholarships.
• Leaving out the school's EIN for the American opportunity credit. It is required on Form 8863.
• Using payments from the wrong year. Do not use amounts paid in 2023 or 2025 to figure your 2024 education credits.
• Using the same expenses for two tax benefits. Expenses used for an education credit cannot also support a tax-free distribution from a Coverdell ESA or section 529 plan.
• Assuming everyone under age 24 can receive a refundable credit. If you were under 24 at the end of 2024, check the line 7 conditions before completing line 8.

Questions people ask

How much can each credit be worth for 2024?

The American opportunity credit is up to $2,500 per eligible student. The lifetime learning credit is up to $2,000 per return. Both phase out as MAGI rises from $80,000 to $90,000, or from $160,000 to $180,000 for a joint return.

Can an education credit give me a refund?

Up to 40% of the American opportunity credit may be refundable, subject to the eligibility rules. The lifetime learning credit is nonrefundable: it can reduce your tax, but any excess is not refunded.

Do books and supplies count?

For the American opportunity credit, required course materials can qualify whether or not you buy them from the school. For the lifetime learning credit, books, supplies, and equipment qualify only if payment to the institution is required as a condition of enrollment or attendance. Room and board, transportation, insurance, and medical expenses do not qualify.

Can I claim the lifetime learning credit after four years of college?

Yes, if you meet its requirements. It is available for all years of postsecondary education and for courses to acquire or improve job skills, with no limit on the number of tax years you can claim it. The American opportunity credit is limited to four tax years per eligible student and requires that the student had not completed the first four years of postsecondary education before 2024.

Official sources

• https://www.irs.gov/pub/irs-prior/i8863--2024.pdf
• https://www.irs.gov/pub/irs-prior/f8863--2024.pdf