If this amount is $0 the calculator will use the amount entered into the normal wages, salaries, tips, etc. Retirement savings contributions credit (form 8880) Then, attach Form 8863 to your Form 1040. Form 8863 = Form 8863 : Calculation of Student's 1040 Scholarship/Grant Income : Amer. American Opportunity Credit Also remember to include out of pocket payments made by the student or on the students behalf. Tax Preparation Fee Calculator For Individuals. [Skip to Content] Education credits (form 8863, line 23) Enter any education credits you can claim from form 8863 line 23. Form 8863 is used to calculate education credits. Use Form 8863 to find out how much you qualify for. If you dont receive it, notify the school. The American Opportunity Credit is worth up to $2,500 and the Lifetime Learning Credit is worth up to $2,000. Step 2 Find the amount that you received as a refund of tuition you originally used to claim the credit. How to Claim: Determine your eligibility, credit amount, and claim the credit by filling out IRS Form 8863. Leave this amount as $0 if you are unsure of the amount or do not have access to your spouse's W-2 form(s). Opportunity Credit: Lifetime Learning Credit: AOC: LTL: Excess Restricted Scholarship/Grants not used for ed exp. not used for Ed. Something to keep in mind when filing IRS Form 8863: you can claim both on the same return, but only one per student. Claiming the American Opportunity Tax Credit. Update March 15, 2021: The American Rescue Plan was signed into law on March 11, 2021. Calculate your tax preparation fee for your personal tax return by using this calculator. Form 8863 - Education Credits Two tax credits that can help you offset the cost of higher education are: the American Opportunity Credit and the Lifetime Learning Credit. The Lifetime Learning Credit offers 20% credit for the first $10,000 of qualifying education expenses.. It is used for both the American Opportunity Tax Credit and the Lifetime Learning Credit. Form 8863 was used to calculate the American Opportunity Credit and the Lifetime Learning Credit. Enter the quantity of forms and check the forms that you need to file and the total amount will be calculated at the bottom. New this year: To claim the American opportunity credit, you must provide the educational institutions employer identification number (EIN) on your Form 8863. + G2 + G2: Less exp. If you claimed the Lifetime Learning Credit, you can find this number on line 4 of Form 8863 from last year. This includes student loans, payments, credit cards and taxable portions of scholarships/grants. G1 : G1: Unrestricted Scholarship/Grants not used for ed exp. Because of this, there will be some changes to the 2021 Tax Calculator below. Regarding Form 8917 for the Tuition and Fees Deduction, this is calculated "above-the-line," which reduces income. entry field. As new information is released, we will update this page. When you complete the questions in the applicable section, using Form 8863 as an example, you will answer the questions in the Education section and if you qualify for education or other credit, the Form 8863 will be generated and be included in your return when you file. shown in Box 1 of Form 1098-T. Tax Form 8863 Education Credits. If you claimed the American Opportunity Credit, you can find the amount on line 1, column C of the same form. If you choose to claim the AOTC on your tax return using Form 8863, you cannot also claim the LLC for the same student in the same year.