Tax Preparation Help  
Publication 970 2008 Tax Year

Form 8863 Education Credits (Hope and Lifetime Learning Credits) 2008

Summary: This is an example of Form 8863 (2008) as pertains to the description in the text. The line items completed are:

Name(s) shown on return” field contains Judy Green
Your social security number” field contains 000-00-7777
Under“Part II: Lifetime Learning Credit.”:
3a. Student's name (as shown on page 1 of your tax return)
First name” field contains Judy
Last name” field contains Green
3b. Student's social security number (as shown on page 1 of your tax return)” field contains 000-00-7777
3c. Qualified expenses. See instructions” field contains 4,500
4. Add the amounts on line 3, column (c), and enter the total” field contains 4,500
5a. Enter the smaller of line 4 or $10,000” field contains 4,500
5c. Subtract line 5b from line 5a.”field contains 4,500
6b. Multiply line 5c by 20% (.20)”field contains 900
6c. Tentative lifetime learning credit. Add lines 6a and 6b and go to Part III” field contains 900
Under“Part III: Allowable Education Credits”:
7. Tentative education credits. Add lines 2 and 6c” field contains 900
8. Enter: $116,000 if married filing jointly; $58,000 if single, head of household, or qualifying widow(er)” field contains 58,000
9. Enter the amount from Form 1040, line 38, or Form 1040A, line 22” field contains 27,000
10. Subtract line 9 from line 8. If zero or less, stop; you cannot take any education credits” field contains 31,000
11. Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er)” field contains 10,000
13. Multiply line 7 by line 12” field contains 900
14. Enter the amount from Form 1040, line 46, or Form 1040A, line 28” field contains 2,200
15. Enter the total, if any, of your credits from Form 1040, lines 47 through 49, or Form 1040A, lines 29 and 30” field contains 0
16. Subtract line 15 from line 14. If zero or less, stop; you cannot take any education credits” field contains 2,200
17. Education credits. Enter the smaller of line 13 or line 16 here and on Form 1040, line 50, or Form 1040A, line 31” field contains 900

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