Form 8863 Education Credits (Hope and Lifetime Learning Credits) 2005. Summary: This is an example of Form 8863 (2005) as pertains to the description in the text. The line items completed are:
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“Name(s) shown on return” field contains Dave and Valerie Jones
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“Your social security number” field contains 987-00-6543
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Under
“Part I: Hope Credit”:
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“1a. Student's name (as shown on page 1 of your tax return:”
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“First name” field contains Corey
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“Last name” field contains Jones
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“1b. Student's social security number (as shown on page 1 of your tax return)” field contains 137-00-9642
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“1c. Qualified expenses (see instructions). Do not enter more than $2,000 for each student.” field contains 2,000
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“1d. Enter the smaller of the amount in column (c) or $1,000” field contains 1,000
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“1e. Add column (c) and column (d)” field contains 3,000
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“1f. Enter one-half of the amount in column (e)” field contains 1,500
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“2. Tentative Hope credit. Add the amounts on line 1, column (f). If you are taking the lifetime learning credit for another
student, go to
Part II; otherwise, go to Part III” field contains 1,500
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Under
“Part II: Lifetime Learning Credit”:
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“3a. Student's name (as shown on page 1 of your tax return)”
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“First name” field contains Sean
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“Last name” field contains Jones
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“3b. Student's social security number (as shown on page 1 of your tax return)” field contains 246-00-9731
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“3c. Qualified expenses (see instructions)” field contains 4,800
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“4. Add the amounts on line 3, column (c), and enter the total” field contains 4,800
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“5. Enter the smaller of line 4 or $10,000” field contains 4,800
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“6. Tentative lifetime learning credit. Multiply line 5by 20% (.20) and go to Part III” field contains
960
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Under
“Part III: Allowable Education Credits”:
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“7. Tentative education credits. Add lines 2and 6” field contains 2,460
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“8. Enter: $107,000 if married filing jointly; $53,000 if single, head of household, or qualifying widow(er)” field contains
107,000
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“9. Enter the amount from Form 1040, line 38, or Form 1040A, line 22 (Footnote: See Publication 970 for the amount to enter
if you are filing
Form 2555, 2555-EZ, or 4563 or you are excluding income from Puerto Rico)” field contains 90,000
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“10. Subtract line 9 from line 8. If zero or less, stop; you cannot take any education credits” field contains 17,000
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“11. Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er)” field contains
20,000
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“12. If line 10 is equal to or more than line 11, enter the amount from line 7on line 13 and go to line 14. If line 10 is less
than line 11,
divide line 10 by line 11. Enter the result as a decimal (rounded to at least three places)” field contains .850
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“13. Multiply line 7 by line 12” field contains 2,091
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“14. Enter the amount from Form 1040, line 46, or Form 1040A, line 28” field contains 9,956
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“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
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“16. Subtract line 15 from line 14. If zero or less, stop; you cannot take any education credits” field contains 9,956
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“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
2,091
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