Hello and welcome to the session. This is Professor Farhad. In this session, we're going to be looking at education tax credit. This topic is covered in the income tax course, the CPA exam Regulation section, as well as the enrolled agent exam. As always, I would like to remind you, my viewers, to connect with me on a personal as well as a professional level. If you have a LinkedIn account, please connect with me. Only then, if you don't have a LinkedIn account, I strongly suggest you do so. If you have a Facebook account, please like my Facebook page and connect with me on a personal level. You want to make sure you subscribe to my YouTube channel. This is where I house all of my lectures. Please like my lectures, share them, and put them in playlists so that other people will benefit as well. I do have a Twitter account, and on my website, I do house my lectures organized by chapter and course. Now let's talk about education tax credit. The first thing you need to know is that we have two types of education tax credits available. These are the American Opportunity Credit, also known as the HOPE scholarship credit (it used to be known by that name), and the Lifetime Learning credit. Now, I'm just going to give you a quick tip. Hopefully, you will remember this. Think of lifetime. You could always have the Lifetime Learning credit. It means at any point in your life, you can have the Lifetime Learning credit. It comes after the American Opportunity Credit. So, the American Opportunity Credit is the one you're assuming for the first four years of college. Higher education qualifies you for the American Opportunity Credit. Once you use this up, then...
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8863 qualified expenses Form: What You Should Know
For example, if you were attending a two-year college to earn a bachelor's degree, you may have qualified education expenses that total 100 percent of your total qualified education expenses if you: Meet the definition of “postsecondary educational institution” under Internal Revenue Code section 7874 Maintain your eligibility for the credit, including using Internal Revenue Service Form 8909 to document your eligibility for the credit and how much you have paid in tuition and other qualifying expenses The Form 8863 is a tax form used only to claim education credits. The credit itself is a tax deduction for qualified education expenses, not a tax credit in and of itself. What is “eligible postsecondary educational institution”? In general, the following are eligible institutions: a postsecondary educational institution for a period of 3 quarters (as defined by the IRS). A postsecondary educational institution is eligible only if it meets all the following conditions: For example, a taxpayer is a resident of Washington for 3 quarters and is attending an eligible postsecondary educational institution in the District of Columbia. You can find a list of all eligible institutions and required quarters below. What is required in qualifying expenses? Qualified student must have for at least 3 quarters before the next quarter in which qualified income will be excluded because of section 170(b) (the 25 percent limit on adjusted gross income). Qualified student must have for at least 5 quarters to qualify for the credit. For example, a taxable year of 4 quarters would qualify a taxpayer for the credit at the end of those 4 quarters. How to use the Form 8863-C If you are filing a Form 8863 to claim the credit, you can print an e-file version. If you're filing a return electronically, check the box for Form 8863 and enter your SSN. You'll use the e-file version to make your payments. Once the payment is complete, the IRS e-mails you notification that includes your Form 8863 and payment. If you prefer, you can print a copy of the notice and send it to yourself. When filing on your own, complete the Form 8863. For your personal return, attach a copy of your payment statement and any other evidence that supports your claim for the credit.
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