Jim Grant, a single taxpayer, enrolled full-time at a local college (not in a Midwestern disaster area) to earn a degree in computer science. This is the first year of his postsecondary education. During 2008, he paid $2,600 for his qualified 2008 tuition. He received Form 1098-T (shown below) from the college. He and the college meet all of the requirements for the Hope credit. Jim's MAGI is $37,000. His income tax liability, before credits, is $3,700. He figures his credit of $1,800 as shown on the Form 8863 on page 17.
In Appendix A
at the end of this publication there is an example illustrating the use of Form 8863 when both the Hope credit and the lifetime learning credit are claimed on the same tax return.