Form 8863 2018

What is the Form 8863

The Form 8863 is an important document used by taxpayers in the United States to claim education credits. Specifically, it allows individuals to apply for the American Opportunity Credit and the Lifetime Learning Credit. These credits can significantly reduce the amount of tax owed, making education more affordable for many families. Understanding the purpose and eligibility criteria for this form is essential for maximizing potential tax benefits.

How to use the Form 8863

To effectively use the Form 8863, taxpayers should first determine their eligibility for the education credits. This involves reviewing the qualifying expenses related to higher education, such as tuition and fees. Once eligibility is confirmed, the form must be filled out accurately, providing detailed information about the educational institution and the taxpayer's enrollment status. It is crucial to retain supporting documentation, such as receipts and enrollment records, to substantiate the claims made on the form.

Steps to complete the Form 8863

Completing the Form 8863 involves several key steps:

• Gather necessary documents, including Form 1098-T from the educational institution.
• Determine the amount of qualified education expenses incurred during the tax year.
• Fill out the form, ensuring all required fields are completed accurately.
• Calculate the credits based on the information provided, following the instructions for the American Opportunity and Lifetime Learning Credits.
• Attach the completed Form 8863 to your tax return when filing.

Filing Deadlines / Important Dates

Filing deadlines for Form 8863 align with the general tax filing deadlines set by the IRS. Typically, individual tax returns must be filed by April 15 of the following year. However, if additional time is needed, taxpayers can file for an extension, which extends the deadline to October 15. It is important to submit Form 8863 by these deadlines to ensure eligibility for the education credits.

Eligibility Criteria

To qualify for the education credits claimed on Form 8863, taxpayers must meet specific eligibility criteria. The American Opportunity Credit is available for students pursuing a degree or other recognized education credential, while the Lifetime Learning Credit is available for any post-secondary education. Income limits also apply, affecting the amount of credit that can be claimed. Taxpayers should review these criteria carefully to ensure compliance and maximize their benefits.

Required Documents

When filing Form 8863, several documents are required to substantiate the claims made. Key documents include:

• Form 1098-T from the educational institution, which reports qualified tuition and related expenses.
• Receipts or statements that detail payments made for qualified education expenses.
• Records of enrollment status and course load, which may include transcripts or enrollment letters.

Form Submission Methods (Online / Mail / In-Person)

Form 8863 can be submitted in several ways, depending on how the taxpayer chooses to file their tax return. If filing electronically, the form is typically included as part of the e-filing process through tax software. For those who prefer to file by mail, the completed form should be attached to the paper tax return and sent to the appropriate IRS address. In-person submissions are not common for this form, as most taxpayers utilize electronic or mail methods for convenience.