2012

Instructions for Form 8863

Education Credits (American Opportunity and Lifetime Learning Credits)

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code unless 

otherwise noted.

General Instructions

What's New

New format for Form 8863. Form 8863 has a new format for 

the 2012 year. Begin on page 2, and complete a separate Part III 

on page 2 for each individual for whom you are claiming either 

credit (American opportunity credit or lifetime learning credit) 

before you complete Parts I and II.

Purpose of Form

Use Form 8863 to figure and claim your education credits, which 

are based on qualified education expenses paid to an eligible 

postsecondary educational institution. For 2012, there are two 

education credits.

The American opportunity credit, part of which may be 

refundable.

The lifetime learning credit, which is nonrefundable.

A refundable credit can give you a refund for any part of the 

credit that is more than your total tax. A nonrefundable credit 

can reduce your tax, but any excess is not refunded to you.

Both of these credits have different rules that can affect your 

eligibility to claim a specific credit. These differences are shown 

in Table 1 below.

Who Can Claim an Education Credit

You may be able to claim an education credit if you, your 

spouse, or a dependent you claim on your tax return was a 

student enrolled at or attending an eligible educational 

institution. The credits are based on the amount of adjusted 

qualified education expenses paid for the student in 2012 for 

academic periods beginning in 2012 or beginning in the first 3 

months of 2013.

Academic period. An academic period is any quarter, 

semester, trimester, or any other period of study as reasonably 

determined by an eligible educational institution. If an eligible 

educational institution uses credit hours or clock hours and does 

not have academic terms, each payment may be treated as an 

academic period. For details, see Academic period in chapters 2 

and 3 of Pub. 970.

Qualified education expenses for any academic period 

must be reduced by any tax-free educational assistance 

allocable to that academic period. See Adjusted 

Qualified Education Expenses, later.

Who can claim a dependent's expenses. If a student is 

claimed as a dependent on another person's tax return, all 

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Comparison of Education Credits

Caution. You can claim both the American opportunity credit and the lifetime learning credit on the same 

return-but not for the same student.

American Opportunity Credit Lifetime Learning Credit

Maximum credit Up to $2,500 credit per eligible student Up to $2,000 credit per return

Limit on modified 

adjusted gross income 

(MAGI)

$180,000 if married filing jointly; 

$90,000 if single, head of household, or qualifying 

widow(er)

$124,000 if married filing jointly; 

$62,000 if single, head of household, or qualifying 

widow(er)

Refundable or 

nonrefundable

40% of credit may be refundable; the rest is 

nonrefundable

Nonrefundable—credit limited to the amount of tax you 

must pay on your taxable income

Number of years of 

postsecondary education

Available ONLY if the student had not completed the first 

4 years of postsecondary education before 2012

Available for all years of postsecondary education and for 

courses to acquire or improve job skills

Number of tax years 

credit available

Available ONLY for 4 tax years per eligible student 

(including any year(s) Hope credit was claimed)

Available for an unlimited number of years

Type of program required Student must be pursuing a program leading to a degree 

or other recognized education credential 

Student does not need to be pursuing a program leading 

to a degree or other recognized education credential

Number of courses Student must be enrolled at least half time for at least 

one academic period beginning during the year 

Available for one or more courses

Felony drug conviction As of the end of 2012, the student had not been 

convicted of a felony for possessing or distributing a 

controlled substance

Felony drug convictions do not make the student 

ineligible

Qualified expenses Tuition, required enrollment fees, and course materials 

that the student needs for a course of study whether or 

not the materials are bought at the educational institution 

as a condition of enrollment or attendance

Tuition and required enrollment fees (including amounts 

required to be paid to the institution for course-related 

books, supplies, and equipment) 

Payments for academic 

periods

Payments made in 2012 for academic periods beginning in 2012 or beginning in the first 3 months of 2013 

Table 1. 

Jan 11, 2013 Cat. No. 53002G
qualified education expenses of the student are treated as 

having been paid by that person. Therefore, only that person can 

claim an education credit for the student. If a student is not 

claimed as a dependent on another person's tax return, only the 

student can claim a credit.

Expenses paid by a third party. Qualified education 

expenses paid on behalf of the student by someone other than 

the student (such as a relative) are treated as paid by the 

student. However, qualified education expenses paid (or treated 

as paid) by a student who is claimed as a dependent on your tax 

return are treated as paid by you. Therefore, you are treated as 

having paid expenses that were paid by the third party. For more 

information and an example, see Who Can Claim a Dependent's 

Expenses in Pub. 970, chapter 2 or 3.

Who cannot claim a credit. You cannot take an education 

credit if any of the following apply.

1. You are claimed as a dependent on another person's tax 

return, such as your parent's return.

2. Your filing status is married filing separately.

3. You (or your spouse) were a nonresident alien for any part 

of 2012 and did not elect to be treated as a resident alien 

for tax purposes.

4. Your modified adjusted gross income (MAGI) is:

a. For the American opportunity credit: $180,000 or more 

if married filing jointly, or $90,000 or more if single, 

head of household, or qualifying widow(er) with 

dependent child. 

b. For the lifetime learning credit: $124,000 or more if 

married filing jointly, or $62,000 or more if single, head 

of household, or qualifying widow(er) with dependent 

child.

Generally, your MAGI is the amount on your Form 1040, 

line 38, or Form 1040A, line 22. However, if you are filing Form 

2555, Form 2555–EZ, or Form 4563, or are excluding income 

from Puerto Rico, add to the amount on your Form 1040, line 38, 

or Form 1040A, line 22, the amount of income you excluded. For 

details, see Pub. 970.

American Opportunity Credit

You may be able to take a credit of up to $2,500 for adjusted 

qualified education expenses (defined later) paid for each 

student who qualifies for the American opportunity credit. This 

credit equals 100% of the first $2,000 and 25% of the next 

$2,000 of adjusted qualified expenses paid for each eligible 

student. The amount of your credit for 2012 is gradually reduced 

(phased out) if your MAGI is between $80,000 and $90,000 

($160,000 and $180,000 if you file a joint return). You cannot 

claim a credit if your MAGI is $90,000 or more ($180,000 or 

more if you file a joint return).

If you can claim the American opportunity credit for any 

student, you can choose between using that student's 

adjusted qualified education expenses for the American 

opportunity credit or for the lifetime learning credit. If you have 

this choice, the American opportunity credit will always be 

greater than the lifetime learning credit.

Student qualifications. Generally, you can take the American 

opportunity credit for a student only if all of the following four 

requirements are met.

1. As of the beginning of 2012, the student had not 

completed the first four years of postsecondary education 

(generally, the freshman through senior years of college), as 

determined by the eligible educational institution. For this 

purpose, do not include academic credit awarded solely 

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because of the student's performance on proficiency 

examinations.

2. Neither the American opportunity credit nor the Hope 

Scholarship credit has been claimed (by you or anyone else) for 

this student for any four prior tax years.

Example. Sally was eligible for the Hope scholarship credit 

in 2006 and 2007 and for the American opportunity credit in 

2009 and 2011. Her parents claimed the Hope scholarship credit 

for Sally on their tax return for 2006 and 2007 and claimed the 

American opportunity credit for Sally on their 2009 tax return. 

Sally claimed the American opportunity credit on her 2011 tax 

return. Regardless whether Sally is otherwise eligible for the 

American opportunity credit in 2012, the American opportunity 

credit cannot be claimed for Sally in 2012.

3. For at least one academic period beginning (or treated as 

beginning) in 2012, the student both:

a. Was enrolled in a program that leads to a degree, 

certificate, or other recognized educational credential; and

b. Carried at least one-half the normal full-time workload for 

his or her course of study.

The standard for what is half of the normal full-time work load 

is determined by each eligible educational institution. However, 

the standard may not be lower than any of those established by 

the U.S. Department of Education under the Higher Education 

Act of 1965.

For purposes of whether the student satisfies this third 

requirement for 2012, treat an academic period beginning in the 

first three months of 2013 as if it began in 2012 if qualified 

education expenses for the student were paid in 2012 for that 

academic period. See Prepaid Expenses, later.

Example. Glenda enrolls on a full-time basis in a degree 

program for the 2013 Spring semester, which begins in January 

2013. Glenda pays her tuition for the 2013 Spring semester in 

December 2012. Because the tuition Glenda paid in 2012 

relates to an academic period that begins in the first 3 months of 

2013, her eligibility to claim an American opportunity credit in 

2012 is determined as if the 2013 Spring semester began in 

2012. Therefore, Glenda satisfies this third requirement.

4. As of the end of 2012, the student had not been convicted 

of a federal or state felony for possessing or distributing a 

controlled substance.

If the requirements, above, are not met for any student, 

you cannot take the American opportunity credit for that 

student. You may be able to take the lifetime learning 

credit for part or all of that student's qualified education 

expenses instead.

Lifetime Learning Credit

The lifetime learning credit equals 20% of adjusted qualified 

education expenses (defined later), up to a maximum of $10,000 

of adjusted qualified education expenses per return. Therefore, 

the maximum lifetime learning credit you can claim on your 

return for the year is $2,000, regardless of the number of 

students for whom you paid qualified education expenses. The 

amount of your credit for 2012 is gradually reduced (phased out) 

if your MAGI is between $52,000 and $62,000 ($104,000 and 

$124,000 if you file a joint return). You cannot claim a credit if 

your MAGI is $62,000 or more ($124,000 or more if you file a 

joint return).

You cannot claim the lifetime learning credit for any student if 

you claim the American opportunity credit for that student for the 

same tax year.

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-2- Instructions for Form 8863 (2012)
Qualified Education Expenses

Generally, qualified education expenses are amounts paid in 

2012 for tuition and fees required for the student's enrollment or 

attendance at an eligible educational institution. It does not 

matter whether the expenses were paid in cash, by check, by 

credit or debit card, or with borrowed funds.

For course-related books, supplies, and equipment only 

certain expenses qualify.

American opportunity credit: Qualified education expenses 

include amounts spent on books, supplies, and equipment 

needed for a course of study, whether or not the materials are 

purchased from the educational institution as a condition of 

enrollment or attendance.

Lifetime learning credit: Qualified education expenses include 

amounts for books, supplies, and equipment only if required to 

be paid to the institution as a condition of enrollment or 

attendance.

Qualified education expenses include nonacademic fees, 

such as student activity fees, athletic fees, or other expenses 

unrelated to the academic course of instruction, only if the fee 

must be paid to the institution as a condition of enrollment or 

attendance. However, fees for personal expenses (described 

below) are never qualified education expenses.

Qualified education expenses do not include amounts paid 

for:

Personal expenses. This means room and board, insurance, 

medical expenses (including student health fees), transportation, 

and other similar personal, living, or family 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.

You should receive Form 1098-T, Tuition Statement, from the 

institution reporting either payments received in 2012 (box 1) or 

amounts billed in 2012 (box 2). However, the amount in box 1 or 

2 of Form 1098-T may be different from the amount you paid (or 

are treated as having paid). In completing Form 8863, use only 

the amounts you actually paid (plus any amounts you are treated 

as having paid) in 2012 (reduced, as necessary, as described in 

Adjusted Qualified Education Expenses, later). See chapters 2 

and 3 of Pub. 970 for more information on Form 1098-T.

Qualified education expenses paid on behalf of the student 

by someone other than the student (such as a relative) are 

treated as paid by the student. Qualified education expenses 

paid (or treated as paid) by a student who is claimed as a 

dependent on your tax return are treated as paid by you.

If you or the student takes a deduction for higher education 

expenses, such as on Schedule A or Schedule C (Form 1040), 

you cannot use those same expenses in your qualified education 

expenses when figuring your education credits.

Any qualified expenses used to figure the education 

credits cannot be taken into account in determining the 

amount of a distribution from a Coverdell ESA or a 

qualified tuition program (section 529 plan) that is excluded from 

gross income. See Pub. 970, chapters 6 and 7, for more 

information.

Prepaid Expenses

Qualified education expenses paid in 2012 for an academic 

period that begins in the first 3 months of 2013 can be used in 

figuring an education credit for 2012 only. See Academic period, 

earlier. For example, if you pay $2,000 in December 2012 for 

qualified tuition for the 2013 winter quarter that begins in January 

CAUTION

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2013, you can use that $2,000 in figuring an education credit for 

2012 only (if you meet all the other requirements).

You cannot use any amount you paid in 2011 or 2013 to 

figure the qualified education expenses you use to 

figure your 2012 education credit(s).

Adjusted Qualified Education Expenses

For each student, reduce the qualified education expenses paid 

in 2012 by or on behalf of that student under the following rules. 

The result is the amount of adjusted qualified education 

expenses for each student.

Tax-free educational assistance. For tax-free educational 

assistance received in 2012, reduce the qualified educational 

expenses for each academic period by the amount of tax-free 

educational assistance allocable to that academic period. See 

Academic period, earlier.

Tax-free educational assistance includes:

1. The tax-free part of any scholarship or fellowship 

(including Pell grants),

2. The tax-free part of any employer-provided educational 

assistance,

3. Veterans' educational assistance, and

4. Any other educational assistance that is excludable from 

gross income (tax free), other than as a gift, bequest, devise, or 

inheritance.

Generally, any scholarship or fellowship is treated as tax-free 

educational assistance. However, a scholarship or fellowship is 

not treated as tax-free educational assistance to the extent the 

student includes it in gross income (if the student is required to 

file a tax return) for the year the scholarship or fellowship is 

received and either:

The scholarship or fellowship (or any part of it) must be 

applied (by its terms) to expenses (such as room and board) 

other than qualified education expenses as defined in Qualified 

education expenses in Pub. 970, chapter 1; or

The scholarship or fellowship (or any part of it) may be 

applied (by its terms) to expenses (such as room and board) 

other than qualified education expenses as defined in Qualified 

education expenses in Pub. 970, chapter 1.

You may be able to increase the combined value of an 

education credit and certain educational assistance if 

the student includes some or all of the educational 

assistance in income in the year it is received. For details, see 

Adjustments to Qualified Education Expenses, in chapters 2 and 

3 of Pub. 970.

Some tax-free educational assistance received after 2012 

may be treated as a refund of qualified education expenses paid 

in 2012. This tax-free educational assistance is any tax-free 

educational assistance received by you or anyone else after 

2012 for qualified education expenses paid on behalf of a 

student in 2012 (or attributable to enrollment at an eligible 

educational institution during 2012).

If this tax-free educational assistance is received after 2012 

but before you file your 2012 income tax return, see Refunds 

received after 2012 but before your income tax return is filed, 

later. If this tax-free educational assistance is received after 

2012 and after you file your 2012 income tax return, see Refunds 

received after 2012 and after your income tax return is filed, 

later.

Refunds. A refund of qualified education expenses may reduce 

qualified education expenses for the tax year or may require you 

to repay (recapture) the credit that you claimed in an earlier year. 

Some tax-free educational assistance received after 2012 may 

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Instructions for Form 8863 (2012) -3-
be treated as a refund. See Tax-free educational assistance, 

earlier.

Refunds received in 2012. For each student, figure the 

adjusted qualified education expenses for 2012 by adding all the 

qualified education expenses paid in 2012 and subtracting any 

refunds of those expenses received from the eligible educational 

institution during 2012.

Refunds received after 2012 but before your income tax 

return is filed. If anyone receives a refund after 2012 of 

qualified education expenses paid on behalf of a student in 2012 

and the refund is received before you file your 2012 income tax 

return, reduce the amount of qualified education expenses for 

2012 by the amount of the refund.

Refunds received after 2012 and after your income tax 

return is filed. If anyone receives a refund after 2012 of 

qualified education expenses paid on behalf of a student in 2012 

and the refund is received after you file your 2012 income tax 

return, you may need to repay some or all of the credit that you 

claimed. See Credit recapture, next.

Credit recapture. If any tax-free educational assistance for the 

qualified education expenses paid in 2012, or any refund of your 

qualified education expenses paid in 2012, is received after you 

file your 2012 income tax return, you must recapture (repay) any 

excess credit. You do this by refiguring the amount of your 

adjusted qualified education expenses for 2012 by reducing the 

expenses by the amount of the refund or tax-free educational 

assistance. You then refigure your education credit(s) for 2012 

and figure the amount by which your 2012 tax liability would 

have increased if you had claimed the refigured credit(s). 

Include that amount as an additional tax for the year the refund 

or tax-free assistance was received.

Example. You paid $8,000 tuition and fees in December 

2012 for your child's Spring semester beginning in January 

2013. You filed your 2012 tax return on February 2, 2013, and 

claimed a lifetime learning credit of $1,600 ($8,000 qualified 

education expense paid x .20). You claimed no other tax credits. 

After you filed your return, your child withdrew from two courses 

and you received a refund of $1,400. You must refigure your 

2012 lifetime learning credit using $6,600 ($8,000 qualified 

education expenses − $1,400 refund). The refigured credit is 

$1,320 and your tax liability increased by $280. You must 

include the difference of $280 ($1,600 credit originally claimed − 

$1,320 refigured credit) as additional tax on your 2013 income 

tax return. See the instructions for your 2013 income tax return 

to determine where to include this tax.

If you also pay qualified education expenses in 2013 for 

an academic period that begins in the first 3 months of 

2013 and you receive tax-free educational assistance, 

or a refund, as described above, you may choose to reduce your 

qualified education expenses for 2013 instead of reducing your 

expenses for 2012.

Eligible Educational Institution

An eligible educational institution is generally any accredited 

public, nonprofit, or proprietary (private) college, university, 

vocational school, or other postsecondary institution. Also, the 

institution must be eligible to participate in a student aid program 

administered by the Department of Education. Virtually all 

accredited postsecondary institutions meet this definition.

Additional Information

See Pub. 970, chapters 2 and 3, for more information about 

these credits.

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Specific Instructions

You must complete a separate Part III on page 2 

for each individual for whom you are claiming 

either credit before you complete Parts I and II.

Part I — Refundable American 

Opportunity Credit

Line 1

Enter the amount from Part III, line 30. If you are claiming the 

American opportunity credit for more than one student, add the 

amounts from each student's Part III, line 30, and enter the total 

for those students on line 1.

Line 3

Enter your modified adjusted gross income. Generally, your 

modified adjusted gross income is the amount on your Form 

1040, line 38, or Form 1040A, line 22. However, if you are filing 

Form 2555, Form 2555–EZ, or Form 4563, or are excluding 

income from Puerto Rico, you must include on line 3 the amount 

of income you excluded. For details, see Pub. 970.

Line 7

If you were under age 24 at the end of 2012 and the conditions 

listed below apply to you, you cannot claim any part of the 

American opportunity credit as a refundable credit on your tax 

return. Instead, you can claim your allowed credit, figured in Part 

II, only as a nonrefundable credit to reduce your tax.

You do not qualify for a refundable American opportunity 

credit if 1 (a, b, or c), 2, and 3 below apply to you.

1. You were:

a. Under age 18 at the end of 2012, or

b. Age 18 at the end of 2012 and your earned income 

(defined later) was less than one-half of your support 

(defined later), or

c. Over age 18 and under age 24 at the end of 2012 and a 

full-time student (defined later) and your earned income 

(defined later) was less than one-half of your support 

(defined later).

2. At least one of your parents was alive at the end of 2012.

3. You are not filing a joint return for 2012.

If you meet these conditions, check the box next to line 7, 

skip line 8, and enter the amount from line 7 on line 9. If these 

conditions do not apply to you, complete line 8.

You can answer the following questions to determine whether 

you qualify for a refundable American opportunity credit.

1. Were you under 24 at the end of 2012?

If no, stop here; you do qualify to claim part of the allowable 

American opportunity credit as a refundable credit.

If yes, go to question 2.

2. Were you over 18 at the end of 2012?

If yes, go to question 3.

If no, go to question 4.

3. Were you a full-time student (defined later) for 2012?

If no, stop here; you do qualify to claim part of your allowable 

American opportunity credit as a refundable credit.

If yes, go to question 5.

4. Were you 18 at the end of 2012?

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-4- Instructions for Form 8863 (2012)
If yes, go to question 5.

If no, go to question 6.

5. Was your earned income (defined later) less

than one-half of your support (defined later) for 2012?

If no, stop here; you do qualify to claim part of your allowable 

American opportunity credit as a refundable credit.

If yes, go to question 6.

6. Were either of your parents alive at the end of 2012?

If no, stop here; you do qualify to claim part of your allowable 

American opportunity credit as a refundable credit.

If yes, go to question 7.

7. Are you filing a joint return for 2012?

If no, you do not qualify to claim part of your allowable 

American opportunity credit as a refundable credit.

If yes, you do qualify to claim part of your allowable 

American opportunity credit as a refundable credit.

Earned income. Earned income includes wages, salaries, 

professional fees, and other payments received for personal 

services actually performed. Earned income includes the part of 

any scholarship or fellowship that represents payment for 

teaching, research, or other services performed by the student 

that are required as a condition for receiving the scholarship or 

fellowship. Earned income does not include that part of the 

compensation for personal services rendered to a corporation 

which represents a distribution of earnings or profits rather than 

a reasonable allowance as compensation for the personal 

services actually rendered.

If you are a sole proprietor or a partner in a trade or business 

in which both personal services and capital are material 

income-producing factors, earned income also includes a 

reasonable allowance for compensation for personal services, 

but not more than 30% of your share of the net profits from that 

trade or business (after subtracting the deduction for one-half of 

self-employment tax). However, if capital is not an 

income-producing factor and your personal services produced 

the business income, the 30% limit does not apply.

Support. Your support includes food, shelter, clothing, medical 

and dental care, education and the like. Generally, the amount of 

an item of support will be the amount of expenses incurred by 

the one furnishing such item. If the item of support is in the form 

of property or lodging, measure the amount of such item of 

support by its fair market value. To figure your support, count 

support provided by you, your parents, and others. However, a 

scholarship received by you is not considered support if you 

were a full-time student (defined below) for 2012.

Full-time student. Solely for purposes of determining whether 

a scholarship is considered support, you were a full-time student 

for 2012 if during any part of any 5 calendar months during the 

year you were enrolled as a full-time student at an eligible 

educational institution (defined earlier), or took a full-time, 

on-farm training course given by such an institution or by a state, 

county, or local government agency.

Part II — Nonrefundable Education 

Credits

Line 9

Enter the amount from line 9 on line 8 of the Credit Limit 

Worksheet, later.

Line 10

Enter the amount from Part III, line 31. If you are claiming the 

lifetime learning credit for more than one student, add the 

amounts from each student's Part III, line 31, and enter the total 

for all those students on line 1.

Line 14

Generally, your modified adjusted gross income is the amount 

on your Form 1040, line 38, or Form 1040A, line 22. However, if 

you are filing Form 2555, Form 2555–EZ, or Form 4563, or are 

excluding income from Puerto Rico, you must include on line 3 

the amount of income you excluded. For details, see Pub. 970.

Line 18

Enter the amount from line 18 on line 1 of the Credit Limit 

Worksheet, later.

Line 19

Enter the amount from line 13 of the Credit Limit Worksheet here 

and on Form 1040, line 49, or Form 1040A, line 31.

Credit Limit Worksheet

Complete the credit limit worksheet to figure your 

nonrefundable education credit.

1. Enter the amount from Form 8863, line 18 . . 1.

2. Lines 2–7 are reserved for future use

8. Enter the amount from Form 8863, line 9 . . 8.

9. Add lines 1 and 8 .................. 9.

10. Enter the amount from:

Form 1040, line 46; or

Form 1040A, line 28 ................ 10.

11. Enter the amount from either:

Form 1040, lines 47 and 48, 

and the amount from Schedule R

included on Form 1040, line 53; or

Form 1040A, lines 29 and 30 .......... 11.

12. Subtract line 11 from line 10 ........... 12.

13. Enter the smaller of line 9 or line 12 here and 

on Form 8863, line 19 ............... 13.

You must complete Part III for each student for whom 

you are claiming either the American opportunity credit 

or lifetime learning credit before you complete either 

Part I or Part II. Use additional copies of Page 2 as needed for 

each student.

Part III — Student and Educational 

Institution Information

Line 20

Enter the student's name as shown on page 1 of your tax return.

Line 21

Enter the student's taxpayer identification number as shown on 

page 1 of your tax return.

Line 22

If the student attended only one educational institution, enter the 

information about the institution and answer the questions about 

Form 1098-T in column (a). If the student attended a second 

educational institution, enter the information and answers for the 

second educational institution in column (b). If the student 

attended more than 2 educational institutions, attach an 

additional page 2 completed only through line 22.

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Instructions for Form 8863 (2012) -5-
Line 23

If the American opportunity credit has been claimed for this 

student for 4 prior tax years (including any year for which the 

Hope scholarship credit was claimed for the student), the 

American opportunity credit cannot be claimed for this student 

for 2012. Check “Yes” and go to line 31.

If the American opportunity and Hope scholarship credits 

have been claimed for this student for 3 or fewer prior tax years, 

check “No.” See Student qualifications, earlier.

Line 24

Check “Yes” if the student enrolled at least half-time for at least 

one academic period that began (or is treated as having begun) 

in 2012 at an eligible educational institution in a program leading 

towards a postsecondary degree, certificate, or other recognized 

postsecondary educational credential. Otherwise, check “No.”

If any qualified education expenses for the student were paid 

in 2012 for an academic period beginning in the first 3 months of 

2013, treat that academic period as if it began in 2012. See 

Student qualifications and Prepaid Expenses, earlier.

If you checked “Yes” go to line 25. If you checked “No” the 

student is not eligible for the American opportunity credit, skip 

lines 25 through 30 and go to line 31.

Line 25

Check “Yes” if the student completed the first 4 years of 

postsecondary education before 2012. Otherwise, check “No.”

If you checked “No,” go to line 26. If you checked “Yes,” the 

student is not eligible for the American opportunity credit; skip 

lines 26 through 30 and go to line 31.

Line 26

Check “Yes” if the student was convicted, before the end of 

2012, of a federal or state felony for possession or distribution of 

a controlled substance.

If you checked “No,” complete either lines 27 through 30 or 

line 31 for this student. If you checked “Yes,” the student is not 

eligible for the American opportunity credit; skip lines 26 through 

30 and go to line 31.

You cannot take the American opportunity credit and 

the lifetime learning credit for the same student in the 

same year. If you complete lines 27 through 30 for this 

student, do not complete line 31.

American Opportunity Credit

Line 27

Enter the student's adjusted qualified education expenses for 

line 27. See Qualified Education Expenses, earlier. Use the 

Adjusted Qualified Education Expenses Worksheet, later, to 

figure each student's adjusted qualified education expenses. Do 

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not enter more than $4,000. Enter the total of all amounts from 

all Parts III, line 30, on Part I, line 1.

Lifetime Learning Credit

Line 31

Enter the student's adjusted qualified education expenses for 

line 31. See Qualified Education Expenses, earlier. Use the 

Adjusted Qualified Education Expenses Worksheet, next, to 

figure each student's adjusted qualified education expenses. 

Enter the total of all amounts from Part III, line 31, on Part II, 

line 10.

Adjusted Qualified Education Expenses 

Worksheet

See Qualified Education Expenses, earlier, before 

completing.

Complete a separate worksheet for each student for each 

academic period beginning (or treated as beginning) in 2012 for 

which you paid (or are treated as having paid) qualified 

education expenses in 2012.

1. Total qualified education expenses paid for or 

on behalf of the student in 2012 for the 

academic period ..................

2. Less adjustments:

a. Tax-free educational 

assistance received in 2012 

allocable to the academic 

period ............

b. Tax-free educational 

assistance received in 2013 

(and before you file your 

2012 tax return) allocable to 

the academic period ...

c. Refunds of qualified 

education expenses paid in 

2012 if the refund is 

received in 2012 or in 2013 

before you file your 2012 

tax return ..........

3. Total adjustments (add lines 2a, 2b, and 

2c) ............................

4. Adjusted qualified education expenses. 

Subtract line 3 from line 1. If zero or less, 

enter -0- ........................

If you are claiming an education credit for more than 

one student, complete a separate Part III for each 

student before returning to page 1 to complete Parts I 

and II.

CAUTION

!

-6- Instructions for Form 8863 (2012)