U.S. Individual Income Tax Return Forms

2025

Instructions for Form 8863
Education Credits (American Opportunity and Lifetime Learning Credits)
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments
For the latest information about developments related to
Form 8863 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form8863.

Reminders
Limits on modified adjusted gross income (MAGI).
The lifetime learning credit and the American opportunity
credit MAGI limits are $180,000 if you’re married filing
jointly ($90,000 if you’re filing single, head of household,
or qualifying surviving spouse). See Table 1 and the
instructions for line 3 or line 14.
Form 1098-T requirement. To be eligible to claim the
American opportunity credit or the lifetime learning credit,
the law requires a taxpayer (or a dependent) to have
received Form 1098-T, Tuition Statement, from an eligible
educational institution, whether domestic or foreign.
However, you may claim one of these education
benefits if the student doesn’t receive a Form 1098-T
because the student’s educational institution isn’t required
to furnish a Form 1098-T to the student under existing
rules (for example, if the student is a qualified nonresident
alien, has certain qualified education expenses paid
entirely with scholarships, has certain qualified education
expenses paid under a formal billing arrangement, or is
enrolled only in courses for which no academic credit is
awarded). If a student’s educational institution isn’t
required to provide a Form 1098-T to the student, you may
claim one of these education benefits without a Form
1098-T if you otherwise qualify, can demonstrate that you
(or a dependent) were enrolled at an eligible educational
institution, and can substantiate the payment of qualified
tuition and related expenses.
You may also claim one of these educational benefits if
the student attended an eligible educational institution
required to furnish Form 1098-T but the student doesn’t
receive Form 1098-T before you file your tax return (for
example, if the institution is otherwise required to furnish
the Form 1098-T and doesn’t furnish it or refuses to do so)
and you take the following required steps: After January
31, 2026, but before you file the return, you or the student
must request that the educational institution furnish a
Form 1098-T. You must fully cooperate with the
educational institution’s efforts to gather the information
needed to furnish the Form 1098-T. You must also
otherwise qualify for the benefit, be able to demonstrate
that you (or a dependent) were enrolled at an eligible

Sep 16, 2025

educational institution, and substantiate the payment of
qualified tuition and related expenses.
The amount of qualified tuition and related expenses
reported on Form 1098-T may not reflect the total amount
of the qualified tuition and related expenses paid during
the year for which you may claim an education tax credit.
You may include qualified tuition and related expenses
that are not reported on Form 1098-T when claiming one
of the related credits if you can substantiate payment of
these expenses. You may not include expenses paid on
the Form 1098-T that have been paid by qualified
scholarships, including those that were not processed by
the universities.
Caution: To claim the American opportunity credit, you
must provide the educational institution’s employer
identification number (EIN) on your Form 8863. You
should be able to get this information from Form 1098-T or
the educational institution.
Ban on claiming the American opportunity credit. If
you claim the American opportunity credit even though
you’re not eligible, you may be banned from claiming the
credit depending on your conduct. See the Caution
statement under American Opportunity Credit, later.
Taxpayer identification number (TIN) needed by due
date of return. If you haven’t been issued a TIN by the
due date of your 2025 return (including extensions), you
can’t claim the American opportunity credit on either your
original or an amended 2025 return. Also, the American
opportunity credit isn’t allowed on either your original or an
amended 2025 return for a student who hasn’t been
issued a TIN by the due date of your 2025 return
(including extensions).
Form 8862 may be required. If your American
opportunity credit was denied or reduced for any reason
other than a math or clerical error for any tax year
beginning after 2015, you must attach a completed Form
8862, Information To Claim Certain Credits After
Disallowance, to your tax return for the next tax year for
which you claim the credit. See Form 8862 and its
instructions for details.

General Instructions
Purpose of Form

Use Form 8863 to figure and claim your education credits,
which are based on adjusted qualified education
expenses paid to an eligible educational institution
(postsecondary). For 2025, there are two education
credits.
• The American opportunity credit, part of which may be
refundable.
• The lifetime learning credit, which is nonrefundable.

Instructions for Form 8863 (2025) Catalog Number 53002G
Department of the Treasury Internal Revenue Service www.irs.gov

A refundable credit can give you a refund when the
credit is more than the tax you owe, even if you aren’t
required to file a tax return. A nonrefundable credit can
reduce your tax, but any excess isn’t 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.

Table 1. Comparison of Education Credits for 2025
Caution: You can claim both the American opportunity credit and the lifetime learning credit on the same
return, but not for the same student.
Maximum credit
Limit on modified
adjusted gross
income (MAGI)
Refundable or
nonrefundable
Number of years of
postsecondary
education
Number of tax years
credit available
Type of program
required
Number of courses

Felony drug
conviction
Qualified expenses

Payments for
academic periods
TIN needed by filing
due date
Educational
institution’s EIN

American opportunity credit
Lifetime learning credit
Up to $2,500 credit per eligible student
Up to $2,000 credit per return
$180,000 if married filing jointly;
$180,000 if married filing jointly;
$90,000 if single, head of household, or
$90,000 if single, head of household, or
qualifying surviving spouse
qualifying surviving spouse
40% of credit may be refundable; the rest is
Nonrefundable—credit limited to the amount
nonrefundable
of tax you must pay on your taxable income
Available ONLY if the student had not
Available for all years of postsecondary
completed the first 4 years of postsecondary education and for courses to acquire or
education before 2025
improve job skills
Available ONLY for 4 tax years per eligible
Available for an unlimited number of tax years
student
Student must be pursuing a program leading Student doesn’t need to be pursuing a
to a degree or other recognized education
program leading to a degree or other
credential
recognized education credential
Student must be enrolled at least half-time for Available for one or more courses
at least one academic period beginning
during 2025 (or the first 3 months of 2026 if
the qualified expenses were paid in 2025)
As of the end of 2025, the student had not
Felony drug convictions don’t make the
been convicted of a felony for possessing or
student ineligible
distributing a controlled substance
Tuition, required enrollment fees, and course Tuition and required enrollment fees
materials that the student needs for a course (including amounts required to be paid to the
of study whether or not the materials are
institution for course-related books, supplies,
bought at the educational institution as a
and equipment)
condition of enrollment or attendance
Payments made in 2025 for academic periods beginning in 2025 or beginning in the first 3
months of 2026
Filers and students must have been issued a Students must have been issued a TIN by the
TIN by the due date of their 2025 return
due date of their 2025 return (including
(including extensions)
extensions)
You must provide the educational institution’s Educational institution’s employer
employer identification number (EIN) on your identification number (EIN) is not required on
Form 8863
your Form 8863

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. For 2025, the credits are based on the amount
of adjusted qualified education expenses paid for the
student in 2025 for academic periods beginning in 2025 or
beginning in the first 3 months of 2026.

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 doesn’t have academic terms,
each payment period may be treated as an academic
period. For details, see Academic period in chapters 2
and 3 of Pub. 970.
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Who can claim a dependent’s expenses. If a student is
claimed as a dependent on another person’s tax return, all
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 isn’t claimed as a dependent on another person’s
tax return, only the student can claim the 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’re treated as having paid expenses that
were paid by the third party. For more information and an

Instructions for Form 8863 (2025)

example, see Who Can Claim a Dependent’s Expenses in
Pub. 970, chapters 2 and 3.
Who cannot claim a credit. You cannot claim an
education credit on a 2025 tax return if any of the following
apply.
1. You’re 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 2025 and didn’t elect to be treated as a
resident alien for tax purposes.
4. Your MAGI is $180,000 or more if married filing
jointly; or $90,000 or more if single, head of household, or
qualifying surviving spouse with dependent child.
5. The student has not been issued a TIN by the due
date of his or her 2025 return (including extensions).
Generally, your MAGI is the amount on your Form 1040
or 1040-SR, line 11b. However, if you’re filing Form 2555,
Foreign Earned Income; or Form 4563, Exclusion of
Income for Bona Fide Residents of American Samoa; or
are excluding income from Puerto Rico, add to the amount
on your Form 1040 or 1040-SR, line 11b, the amount of
income you excluded. For details, see Pub. 970.

American Opportunity Credit

Caution: Don’t claim the American opportunity credit for
2 years after there was a final determination that your
claim was due to reckless or intentional disregard of the
rules or 10 years after there was a final determination that
your claim was due to fraud. If you disagree with the final
determination, see the Instructions for Form 8862.
You may be able to claim 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
education expenses paid for each eligible student. The
amount of your credit 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).
Tip: If you can choose between using a student’s
adjusted qualified education expenses for the American
opportunity credit or the lifetime learning credit, the
American opportunity credit will always be greater than the
lifetime learning credit.
Student qualifications. Generally, you can claim the
American opportunity credit for a student on a 2025 tax
return only if all of the following seven requirements are
met.
1. As of the beginning of 2025, the student had not
completed the first 4 years of postsecondary education
(generally, the freshman through senior years of college),
as determined by the eligible educational institution. For
this purpose, don’t include academic credit awarded
solely because of the student’s performance on
proficiency examinations.

Instructions for Form 8863 (2025)

2. The American opportunity credit has not been
claimed (by you or anyone else) for this student for any 4
tax years before 2025. If the American opportunity credit
has been claimed for this student for any 3 or fewer tax
years before 2025, this requirement is met.
Example 1. Sharon was eligible for the American
opportunity credit for 2019, 2020, 2022, and 2024.
Sharon’s parents claimed the American opportunity credit
for her on their 2019, 2020, and 2022 tax returns. Sharon
claimed the American opportunity credit on her own 2024
tax return. The American opportunity credit has been
claimed for Sharon for 4 tax years before 2025. Therefore,
the American opportunity credit cannot be claimed for
Sharon for 2025. If Sharon files Form 8863 for 2025, she
would check “Yes” for Part III, line 23, and would be
eligible to claim only the lifetime learning credit if she
meets all other requirements.
Example 2. Wilbert was eligible for the American
opportunity credit for 2021, 2022, 2023, and 2025.
Wilbert’s parents claimed the American opportunity credit
for Wilbert on their tax returns for 2021, 2022, and 2023.
No one claimed an American opportunity credit for Wilbert
for any other tax year. The American opportunity credit
has been claimed for Wilbert for only 3 tax years before
2025. Therefore, Wilbert meets the second requirement to
be eligible for the American opportunity credit. If Wilbert
files Form 8863 for 2025, he would check “No” for Part III,
line 23. If Wilbert meets all of the other requirements, he is
eligible for the American opportunity credit.
3. For at least one academic period beginning or
treated as beginning (see next) in 2025, 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
workload 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 2025, you must treat an academic period beginning
in the first 3 months of 2026 as if it began in 2025 if
qualified education expenses for the student were paid in
2025 for that academic period. See Prepaid Expenses,
later.
Example. You enroll on a full-time basis in a degree
program for the 2026 spring semester, which begins in
January 2026. You pay your tuition for the 2026 spring
semester in December 2025. Because the tuition you paid
in 2025 relates to an academic period that begins in the
first 3 months of 2026, your eligibility to claim an American
opportunity credit in 2025 is determined as if the 2026
spring semester began in 2025. Therefore, you satisfy this
third requirement.
4. As of the end of 2025, the student had not been
convicted of a federal or state felony for possessing or
distributing a controlled substance.
5. Filers and students must have been issued a TIN by
the due date of their 2025 return (including extensions).

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6. The student received Form 1098-T from the
educational institution for 2025 or you followed the
procedures under Form 1098-T requirement, earlier.
7. You must provide the educational institution’s
employer identification number (EIN) on your Form 8863.
Tip: If the requirements above aren’t met for any student,
you cannot claim the American opportunity credit for that
student. You may be able to claim the lifetime learning
credit for part or all of that student’s qualified education
expenses instead if certain requirements are met.

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 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).
Caution: 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.

Qualified Education Expenses

Generally, qualified education expenses are amounts paid
in 2025 for tuition and fees required for the student’s
enrollment or attendance at an eligible educational
institution. It doesn’t 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 paid for tuition, fees, and
course materials, which include 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 paid 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 don’t include amounts
paid for the following.
• Personal expenses. This means room and board,
insurance, medical expenses (including student health
fees), transportation, and other similar personal, living, or
family expenses.
4

• 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 may receive Form 1098-T from the institution
reporting payments received in 2025 (box 1). However,
the amount in box 1 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’re treated as having paid) in
2025 (reduced, as necessary, as described under
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 C (Form 1040),
you cannot use those same expenses in your qualified
education expenses when figuring your education credits.
Caution: 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 2025 for an
academic period that begins in the first 3 months of 2026
can be used in figuring an education credit for 2025 only.
For example, if you pay $2,000 in December 2025 for
qualified tuition for the 2026 winter quarter that begins in
January 2026, you can use that $2,000 in figuring an
education credit for 2025 only (if you meet all the other
requirements).

Caution: You cannot use any amount you paid in 2024 or
2026 to figure the qualified education expenses you use to
figure your 2025 education credit(s).

Adjusted Qualified Education
Expenses

For each student, reduce the qualified education
expenses paid in 2025 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 2025, reduce the
qualified education 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
grant (including Pell grants);
Instructions for Form 8863 (2025)

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.
Tip: You may be able to increase the combined value of
an education credit if the student includes some or all of a
scholarship or fellowship grant in income in the year it is
received.
Generally, any scholarship or fellowship grant is treated
as tax-free educational assistance. However, a
scholarship or fellowship grant isn’t treated as tax-free
educational assistance to the extent the student includes
it in gross income (the student may or may not be
required to file a tax return) for the year the scholarship or
fellowship grant is received and either:
• The scholarship or fellowship grant (or any part of it)
must be applied (by its terms) to expenses (such as room
and board) other than qualified education expenses, or
• The scholarship or fellowship grant (or any part of it)
may be applied (by its terms) to expenses (such as room
and board) other than qualified education expenses.
Caution: A student cannot choose to include in income a
scholarship or fellowship grant provided by an Indian tribal
government that is excluded from income under the Tribal
General Welfare Exclusion Act of 2014 or benefits
provided by an educational program described in section
5.02(2)(b)(ii) of Revenue Procedure 2014-35, available at
IRS.gov/irb/2014-26_IRB#RP-2014-35.
Coordination with Pell grants and other scholarships
or fellowship grants. You may be able to increase an
education credit and reduce your total tax or increase your
tax refund if the student (you, your spouse, or your
dependent) chooses to include all or part of certain
scholarships or fellowship grants in income. The
scholarship or fellowship grant must be one that may
qualify as a tax-free scholarship under the rules discussed
in chapter 1 of Pub. 970. Also, the scholarship or
fellowship grant must be one that may (by its terms) be
used for expenses other than qualified education
expenses (such as room and board).
The fact that the educational institution applies the
scholarship or fellowship grant to qualified education
expenses (such as tuition and related fees) doesn’t
prevent the student from choosing to apply certain
scholarships or fellowship grants to other expenses (such
as room and board). By choosing to do so, the student will
include the part applied to other expenses (such as room
and board) in gross income and may be required to file a
tax return. However, this allows payments made in cash,
by check, by credit or debit card, or with borrowed funds,
such as a student loan, to be applied to qualified
education expenses. These payments, unlike certain
scholarships or fellowship grants, won’t reduce the
qualified education expenses available to figure an
education credit. The result is generally a larger education
credit that reduces your total tax or increases your tax
refund.

Instructions for Form 8863 (2025)

Example 1. Last year, your child graduated from high
school and enrolled in college for the fall semester. You
and your child meet all other requirements to claim the
American opportunity credit, and you need to determine
adjusted qualified education expenses to figure the credit.
Your child has $5,000 of qualified education expenses
and $4,000 of room and board. Your child received a
$5,000 Pell grant and took out a $2,750 student loan to
pay these expenses. You paid the remaining $1,250. The
Pell grant by its terms may be used for any of these
expenses.
If you and your child choose to apply the Pell grant to
the qualified education expenses, it will qualify as a
tax-free scholarship under the rules discussed in
chapter 1 of Pub. 970. Your child won’t include any part of
the Pell grant in gross income. After reducing qualified
education expenses by the tax-free scholarship, you will
have $0 ($5,000 − $5,000) of adjusted qualified education
expenses available to figure your credit. Your credit will be
$0.
Example 2. The facts are the same as in Example 1. If,
unlike in Example 1, you and your child choose to apply
only $1,000 of the Pell grant to the qualified education
expenses and to apply the remaining $4,000 to room and
board, only $1,000 will qualify as a tax-free scholarship.
Your child will include the $4,000 applied to room and
board in gross income, and it will be treated as earned
income for purposes of determining whether your child is
required to file a tax return. If the $4,000 is your child’s
only income, your child won’t be required to file a tax
return.
After reducing qualified education expenses by the
tax-free scholarship, you will have $4,000 ($5,000 −
$1,000) of adjusted qualified education expenses
available to figure your credit. Your refundable American
opportunity credit will be $1,000. Your nonrefundable
credit may be as much as $1,500, but depends on your
tax liability.
If you’re not otherwise required to file a tax return, you
should file to get a refund of your $1,000 refundable credit,
but your tax liability and nonrefundable credit will be $0.
Note: The result may be different if your child has other
income or if you’re the student. If you’re the student and
you claim the earned income credit, choosing not to apply
a Pell grant to qualified education expenses may decrease
your earned income credit at certain income levels by
increasing your adjusted gross income. For details and
more examples, see Pub. 970.
Tip: Unlike a scholarship or fellowship grant, a tax-free
distribution from a Coverdell ESA or qualified tuition
program (section 529 plan) can be applied to either
qualified education expenses or certain other expenses
(such as room and board) without creating a tax liability for
the student. An education credit can be claimed in the
same year the beneficiary takes a tax-free distribution
from a Coverdell ESA or qualified tuition program, as long
as the same expenses aren’t used for both benefits. For
details, see Pub. 970, chapters 6 and 7.
Tax-free educational assistance treated as a refund.
Some tax-free educational assistance received after 2025
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may be treated as a refund of qualified education
expenses paid in 2025. This tax-free educational
assistance is any tax-free educational assistance received
by you or anyone else after 2025 for qualified education
expenses paid on behalf of a student in 2025 (or
attributable to enrollment at an eligible educational
institution during 2025).
If this tax-free educational assistance is received after
2025, but before you file your 2025 income tax return, see
Refunds received after 2025, but before your income tax
return is filed, later. If this tax-free educational assistance
is received after 2025 and after you file your 2025 income
tax return, see Refunds received after 2025 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 2025 may be treated as a
refund. See Tax-free educational assistance, earlier.
Refunds received in 2025. For each student, figure
the adjusted qualified education expenses for 2025 by
adding all the qualified education expenses paid in 2025
and subtracting any refunds of those expenses received
from the eligible educational institution during 2025.
Refunds received after 2025, but before your
income tax return is filed. If anyone receives a refund
after 2025 of qualified education expenses paid on behalf
of a student in 2025 and the refund is received before you
file your 2025 income tax return, reduce the amount of
qualified education expenses for 2025 by the amount of
the refund.
Refunds received after 2025 and after your income
tax return is filed. If anyone receives a refund after 2025
of qualified education expenses paid on behalf of a
student in 2025 and the refund is received after you file
your 2025 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 2025, or any
refund of your qualified education expenses paid in 2025,
is received after you file your 2025 income tax return, you
must recapture (repay) any excess credit. You do this by
refiguring the amount of your adjusted qualified education
expenses for 2025 by reducing the expenses by the
amount of the refund or tax-free educational assistance.
You then refigure your education credit(s) for 2025 and
figure the amount by which your 2025 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 2025 for your child’s spring semester beginning
in January 2026. You filed your 2025 tax return on
February 3, 2026, and claimed a lifetime learning credit of
$1,600 ($8,000 qualified education expense paid x 20%
(0.20)). 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 2025
lifetime learning credit using $6,600 ($8,000 qualified
education expenses − $1,400 refund). The refigured credit
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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 2026 income tax return. See the instructions
for your 2026 income tax return to determine where to
include this tax.
Tip: If you paid qualified education expenses in both
2025 and 2026 for an academic period that begins in the
first 3 months of 2026 and you receive tax-free
educational assistance or a refund, as described above,
you may choose to reduce the qualified education
expenses you paid in 2026 instead of reducing the
qualified education expenses you paid in 2025.

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.
An eligible educational institution also includes certain
educational institutions located outside the United States
that are eligible to participate in a student aid program
administered by the Department of Education.
Tip: The educational institution should be able to tell you
if it is an eligible educational institution.

Additional Information

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

Specific Instructions
Caution: You must complete a separate Part III on page 2
for each individual for whom you’re 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’re 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 MAGI. Generally, your MAGI is the amount on
your Form 1040 or 1040-SR, line 11b. However, if you’re
filing Form 2555, 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 2025 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
Instructions for Form 8863 (2025)

claim your allowed credit, figured in Part II, only as a
nonrefundable credit to reduce your tax.
You don’t 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 2025, or
b. Age 18 at the end of 2025 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 2025
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
2025.
3. You’re not filing a joint return for 2025.

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 don’t 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 age 24 at the end of 2025?
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 age 18 at the end of 2025?
If yes, go to question 3.
If no, go to question 4.
3. Were you a full-time student (defined later) for
2025?
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 age 18 at the end of 2025?
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 2025?
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
2025?
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 2025?
Instructions for Form 8863 (2025)

If no, you don’t 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.
Caution: The educational institution’s EIN must be
provided on line 22(4) if the American opportunity credit is
claimed for this student.
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 grant
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 grant.
Earned income doesn’t 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’re 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 isn’t an income-producing factor
and your personal services produced the business
income, the 30% limit doesn’t apply.
Support. 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 paid 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 isn’t considered support if you
were a full-time student (defined next) for 2025.
Full-time student. Solely for purposes of determining
whether a scholarship is considered support, you were a
full-time student for 2025 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 the Credit Limit
Worksheet, line 2, later.

Line 10

Enter the amount from Part III, line 31. If you’re 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 10.
7

Line 14

Generally, your MAGI is the amount on your Form 1040 or
1040-SR, line 11b. However, if you’re filing Form 2555, or
Form 4563, or are excluding income from Puerto Rico, you
must include on line 14 the amount of income you
excluded. For details, see Pub. 970.

Line 18

Enter the amount from line 18 on the Credit Limit
Worksheet, line 1, later.

Line 19

Enter the amount from line 7 of the Credit Limit Worksheet
here and on Schedule 3 (Form 1040), line 3.
Credit Limit Worksheet
Complete this worksheet to figure the amount to
enter on line 19.
1. Enter the amount from Form 8863,
line 18 . . . . . . . . . . . . . . . . . . . .
1.
2. Enter the amount from Form 8863,
line 9 . . . . . . . . . . . . . . . . . . . . . .
2.
3. Add lines 1 and 2 . . . . . . . . . . . .
3.
4. Enter the amount from Form 1040
or 1040-SR, line 18 . . . . . . . . . .
5. Enter the total of your credits from
Schedule 3 (Form 1040), lines 1, 2,
6d, and 6l . . . . . . . . . . . . . . . . . .
6. Subtract line 5 from line 4 . . . . . .
7. Enter the smaller of line 3 or line 6
here and on Form 8863,
line 19 . . . . . . . . . . . . . . . . . . . .

4.
5.
6.
7.

Caution: You must complete Part III for each student for
whom you’re 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.

two educational institutions, attach an additional page 2
completed only through line 22.
If the educational institution has a foreign address,
enter the foreign address here and don’t abbreviate the
country name. Follow the country’s practice for entering
the postal code and name of the province, county, or
state.
The educational institution’s EIN must be provided on
line 22(4) if the American opportunity credit is claimed for
this student.

Line 23

If the American opportunity credit has been claimed for
this student for any 4 tax years before 2025, the American
opportunity credit cannot be claimed for this student for
2025. Check “Yes” and go to line 31.
If the American opportunity credit has 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 (see below) in 2025 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 2025 for an academic period beginning in the
first 3 months of 2026, treat that academic period as if it
began in 2025. See Student qualifications and Prepaid
Expenses, earlier.
If you checked “Yes,” go to line 25. If you checked “No,”
the student isn’t 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 2025. Otherwise, check
“No.”
A student has completed the first 4 years of
postsecondary education before 2025 if the educational
institution has awarded the student 4 years of academic
credit at that institution for postsecondary coursework the
student completed before 2025. Disregard any academic
credit awarded solely on the basis of the student’s
performance on proficiency examinations.

Line 21

Enter the student’s social security number (or other TIN, if
applicable) as shown on page 1 of your tax return.

If you checked “No,” go to line 26. If you checked “Yes,”
the student isn’t eligible for the American opportunity
credit; skip lines 26 through 30 and go to line 31.

Line 22

Line 26

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
8

Check “Yes” if the student was convicted, before the end
of 2025, of a federal or state felony for possession or
distribution of a controlled substance.
If you checked “No,” complete lines 27 through 30 for
this student. If you checked “Yes,” the student isn’t eligible
for the American opportunity credit; skip lines 27 through
30 and go to line 31.
Instructions for Form 8863 (2025)

Caution: You cannot claim 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, don’t 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. Don’t 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
on 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 (see
below) in 2025 for which you paid (or are treated as having
paid) qualified education expenses in 2025.
1. Total qualified education expenses paid
for or on behalf of the student in 2025
for the academic period . . . . . . . . . . .
2. Less adjustments:
a. Tax-free educational
assistance received in
2025 allocable to the
academic period . . .
b. Tax-free educational
assistance received in
2026 (and before you
file your 2025 tax
return) allocable to the
academic period . . .
c. Refunds of qualified
education expenses
paid in 2025 if the
refund is received in
2025 or in 2026 before
you file your 2025 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- . . . . . . . . . . . . . . . . . . .
Caution: If you’re 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.
If any qualified education expenses for the student
were paid in 2025 for an academic period beginning in the
first 3 months of 2026, treat that academic period as if it
began in 2025. See Student qualifications and Prepaid
Expenses, earlier.

Instructions for Form 8863 (2025)

9