8863: Education Credits (2025)

Who files this form

Use Form 8863 to figure and claim the American opportunity credit or lifetime learning credit for 2025. You may qualify if you, your spouse, or a dependent you claim attended an eligible postsecondary educational institution.

The credits cover adjusted qualified education expenses paid in 2025 for academic periods beginning in 2025 or the first 3 months of 2026.

You cannot claim either credit if:

• Someone else claims you as a dependent.
• Your filing status is married filing separately.
• You or your spouse were a nonresident alien during any part of 2025 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 for married filing jointly, or $90,000 or more for single, head of household, or qualifying surviving spouse.
• The student was not issued a taxpayer identification number (TIN) by the due date of the student's 2025 return, including extensions.

Additional rules apply to each credit. 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.

When it's due

For a 2025 education credit, if the school is required to provide Form 1098-T but the student has not received it, you or the student must request it after January 31, 2026, and before filing the return. You must fully cooperate with the school's efforts to collect the information needed to issue it and meet the other eligibility and documentation requirements.

What you'll need

Have the following information available:

• Form 1098-T, Tuition Statement, generally required unless an exception in the instructions applies. Part III also asks whether the student received a 2024 Form 1098-T with box 7 checked.
• Payment records for qualified tuition, required fees, and qualifying course materials. Form 1098-T may not show all expenses you can claim.
• Scholarship, educational assistance, and refund information to calculate adjusted qualified education expenses.
• Student names and Social Security numbers or other applicable TINs, as shown on your tax return.
• School names, addresses, and EINs. An EIN is required for the American opportunity credit. The form also asks for it when you answer yes to either Form 1098-T question.
• Form 1040 or 1040-SR and Schedule 3 information needed to calculate income limits and the nonrefundable credit.

You must also attach Form 8862 if your American opportunity credit was denied or reduced for a reason other than a math or clerical error for a tax year beginning after 2015, and this is the next tax year for which you claim the credit.

How to file

1. Complete a separate Part III on page 2 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 a separate worksheet for each applicable academic period.
3. Complete Parts I and II as applicable. Use the Credit Limit Worksheet to calculate the amount on line 19.
4. Report the refundable credit from line 8 on Form 1040 or 1040-SR, line 29. Report the nonrefundable credit from line 19 on Schedule 3 (Form 1040), line 3.
5. Attach Form 8863 to Form 1040 or 1040-SR.

The supplied text does not give a mailing address or e-filing directions. Instructions and the latest information are available at IRS.gov/Form8863.

Common mistakes

• Claiming both credits for the same student. You can claim both on one return, but not for the same student in the same year.
• Completing page 1 first. Complete a separate Part III for every student before Parts I and II.
• Leaving out the school's EIN for the American opportunity credit. Get it from Form 1098-T or the school.
• Using payments from the wrong year. Do not use amounts paid in 2024 or 2026 to calculate a 2025 education credit.
• Using the same expenses for two benefits. Expenses used for an education credit cannot also support a tax-free distribution from a Coverdell ESA or section 529 plan.
• Assuming the American opportunity credit is always refundable. If you were under age 24 at the end of 2025, check the line 7 conditions before claiming a refundable amount.
• Claiming the American opportunity credit during a ban. The instructions prohibit claims for 2 years after a final determination of reckless or intentional disregard of the rules, or 10 years after a final determination of fraud.

Questions people ask

How much can each credit be worth for 2025?

The American opportunity credit is up to $2,500 per eligible student. The lifetime learning credit is up to $2,000 per return. Both are gradually reduced when MAGI is between $80,000 and $90,000, or between $160,000 and $180,000 for a joint return.

Can either credit produce a refund?

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

Do books and living expenses qualify?

For the American opportunity credit, needed course books, supplies, and equipment can qualify even if purchased outside the school. For the lifetime learning credit, these items qualify only if payment to the institution is required for enrollment or attendance. Room and board, insurance, medical expenses, and transportation do not qualify.

Can I claim a credit without Form 1098-T?

Sometimes. If the school is not required to provide one, you may still qualify if you can demonstrate enrollment and substantiate payment of qualified expenses. If the school is required to provide one but does not, you must follow the request and cooperation procedures in the instructions and otherwise qualify.

What if the student has already used the American opportunity credit for four tax years?

The student cannot qualify for that credit for 2025 if it was claimed for any four tax years before 2025. The lifetime learning credit may still be available if its requirements are met.

Official sources

• https://www.irs.gov/pub/irs-prior/i8863--2025.pdf
• https://www.irs.gov/pub/irs-prior/f8863--2025.pdf