Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits) 2012

Summary: This is an example of Form 8863 (2012) as pertains to the description in the text. The line items completed are:

Name(s) shown on returnfield contains Dave and Valerie Jones
Your social security numberfield contains 001–00–0000
UnderCaution: Complete a separate Part III on page 2 for each student for whom you are claiming either credit before you complete Parts I and II:
- Part I: Refundable American opportunity credit
- −Q>1. After completing Part III for each student, enter the total of all amounts from all Parts III, line 30field contains 2,500
- -Q>2. Enter: $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er)field contains 180,000
- Q>3. Enter the amount from Form 1040, line 38, or Form 1040A, line 22. If you are filing Form 2555, 2555–EZ, or 4563, or you are excluding income from Puerto Rice, see Pub. 970 for the amount to enterfield contains 110,000
- Q>4. Subtract line 3 form line 2. If zero or less, stop; you cannot take any education creditfiedl contains 70,000
- Q>5. Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er)field contains 20,000
- Q>6. If line 4 is:
  - Equal to or more than line 5, enter 1.000 on line 6
  - Less than line 5, divide line 4 by line 5. Enter the result as a decimal (rounded to at least three placesfield contains 1.000
- Q>7. Multiply line 1 by line 6. Caution: if you are under age 24 at the end of the year and meet the conditions on page 4 of the instructions, you cannot take the refundable American opportunity credit. Skip line 8, enter the amount from line 7 on line 9, and check this boxfield contains 2,500
- Q>8. Refundable American opportunity credit. Multiply line 7 by 40% (.40). Enter the amount here and on Form 1040 line 66, or Form 1040A, line 40. Then go on to line 9 belowfield contains 1,000
- Under Part II: Nonrefundable Education Credits
- Q>9. Subtract line 8 form line 7. Enter here and on line 8 of the Credit Limit Worksheet (see instructions)field contains 1,500
- Q>10. After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter –0– on line 18, and go to line 19field contains 7,000
- Q>11. Enter the smaller of line 10 or $10,000field contains 10,000
- Q>12. Multiply line 11 by 20% (.20)field contains 1,400
- Q>13. Enter: $124,000 if married filing jointly; $62,000 if single, head of household, or qualifying widow(er)field contains 124,000
- Q>14. Enter the amount from Form 1040, line 38, or Form 1040A, line 22. If you are filing Form 2555, 2555–EZ, or Form 4563, or you are excluding income from Puerto Rice, see Pub. 970 for the amount to enterfield contains 110,000
- Q>15. Subtract line 14 from line 13. If zero or less, skip lines 16 and 17, enter -0– on line 18, and go to line 19field contains 14,000
- Q>16. Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er)field contains 20,000
- Q>17. If line 15 is:
  - Equal to or more than line 16, enter 1.000 on line 17 and go to line 18.
  - Less than line 16, divide line 15 by line 16. Enter the result as a decimal (rounded to at least three placesfield contains .700
- Q. 18. Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet (see instructions)field contains 980
- Q>19. Nonrefundable education credits. Enter the amount from line 13 of the Credit Limit Worksheet (see instructions) here and on Form 1040, line 49, of Form 1040A line 31.field contains 1,000

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