| Pub. 970, Tax Benefits for Education |
2006 Tax Year |
3.
Lifetime Learning Credit
This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Income limits increased. The amount of your lifetime learning credit for 2006 is gradually reduced (phased out) if your modified adjusted gross income
(MAGI) is between
$45,000 and $55,000 ($90,000 and $110,000 if you file a joint return). You cannot claim a credit if your MAGI is $55,000 or
more ($110,000 or more if
you file a joint return). This is an increase from the 2005 limits of $43,000 and $53,000 ($87,000 and $107,000 if filing
a joint return). See
Effect of the Amount of Your Income on the Amount of Your Credit, later, for more information.
There are two tax credits available to help you offset the costs of higher education by reducing the amount of your income
tax. They are the Hope
credit and the lifetime learning credit, also referred to as education credits. This chapter discusses the lifetime learning
credit. The Hope credit
is discussed in chapter 2.
This chapter explains:
-
Who can claim the lifetime learning credit,
-
What expenses qualify for the credit,
-
Who is an eligible student,
-
Who can claim a dependent's expenses,
-
How to figure the credit,
-
How to claim the credit, and
-
When the credit must be repaid.
What is the tax benefit of the lifetime learning credit.
You may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses paid for all
students enrolled in eligible
educational institutions. There is no limit on the number of years the lifetime learning credit can be claimed for each student.
A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of
income subject to tax, a credit
directly reduces the tax itself. The lifetime learning credit is a nonrefundable credit. This means that it can reduce your
tax to zero, but if the
credit is more than your tax the excess will not be refunded to you.
The lifetime learning credit you are allowed may be limited by the amount of your income and the amount of your tax.
You may be able to take a tuition and fees deduction for your education expenses instead of a lifetime learning credit. You
can choose the one that
will give you the lower tax. See chapter 6 for details about the deduction.
Can you claim both education credits this year.
For each student, you can elect for any year only one of the credits. For example, if you elect to take the lifetime
learning credit for a child on
your 2006 tax return, you cannot, for that same child, also claim the Hope credit for 2006.
If you are eligible to claim the lifetime learning credit and you are also eligible to claim the Hope credit for the
same student in the same year,
you can choose to claim either credit, but not both. For 2006, if the total qualified education expenses for a student are
more than $7,500, it will
generally be to your benefit to claim the lifetime learning credit.
If you pay qualified education expenses for more than one student in the same year, you can choose to take credits
on a per-student, per-year
basis. This means that, for example, you can claim the Hope credit for one student and the lifetime learning credit for another
student in the same
year.
Differences between the lifetime learning and Hope credits.
There are several differences between these two credits. For example, you can claim the Hope credit based on the same
student's expenses for no
more than 2 years. However, there is no limit on the number of years for which you can claim a lifetime learning credit based
on the same student's
expenses. The differences between the two credits are summarized in Table 3-1.
|
Table 3-1.Comparison of Education Credits |
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Lifetime Learning Credit
|
Hope Credit
|
|
Up to $2,000 credit per return |
Up to $1,650 credit per eligible student |
|
Available for all years of postsecondary education and for courses to acquire or improve job skills
|
Available ONLY until the first 2 years of post-
secondary education are completed
|
|
Available for an unlimited number of years
|
Available ONLY for 2 years per eligible student
|
|
Student does not need to be pursuing a degree or other recognized education credential
|
Student must be pursuing an undergraduate degree or other recognized education credential
|
|
Available for one or more courses
|
Student must be enrolled at least half time for at least one academic period beginning during the year
|
|
Felony drug conviction rule does not apply
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No felony drug conviction on student's record
|
The following rules will help you determine if you are eligible to claim the lifetime learning credit on
your tax return.
Generally, you can claim the lifetime learning credit if all three of the following requirements are met.
-
You pay qualified education expenses of higher education.
-
You pay the education expenses for an eligible student.
-
The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.
Note.
Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent,
are considered paid by
you.
“Qualified education expenses” are defined below under What Expenses Qualify. “Eligible students” are defined later under
Who Is an Eligible Student. A “dependent for whom you claim an exemption” is defined later under Who Can Claim a Dependent's
Expenses.
You may find Figure 3-1, later in this chapter, helpful in determining if you can claim a lifetime learning credit on your
tax return.
Who Cannot Claim the Credit
You cannot claim the lifetime learning credit for 2006 if any of the following apply.
-
Your filing status is married filing separately.
-
You are listed as a dependent in the Exemptions section on another person's tax return (such as your parents'). See Who Can
Claim a Dependent's Expenses, later.
-
Your modified adjusted gross income (MAGI) is $55,000 or more ($110,000 or more in the case of a joint return). MAGI is explained
later
under Effect of the Amount of Your Income on the Amount of Your Credit.
-
You (or your spouse) were a nonresident alien for any part of 2006 and the nonresident alien did not elect to be treated as
a resident alien
for tax purposes. More information on nonresident aliens can be found in Publication 519, U.S. Tax Guide for Aliens.
-
You claim the Hope credit or a tuition and fees deduction for the same student in 2006.
The lifetime learning credit is based on qualified education expenses you pay for yourself, your
spouse, or a dependent for whom you claim an exemption on your tax return. Generally, the credit is allowed for qualified
education expenses paid in
2006 for an academic period beginning in 2006 or in the first 3 months of 2007.
For example, if you paid $1,500 in December 2006 for qualified tuition for the Spring 2007 semester beginning in January 2007,
you may be able to
use that $1,500 in figuring your 2006 credit.
Academic period.
An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session)
as reasonably determined by
an educational institution. In the case of an educational institution that uses credit hours or clock hours and does not have
academic terms, each
payment period can be treated as an academic period.
Paid with borrowed funds.
You can claim a lifetime learning credit for qualified education expenses paid with the proceeds of a loan. You use
the expenses to figure the
lifetime learning credit for the year in which the expenses are paid, not the year in which the loan is repaid. Treat loan
payments sent directly to
the educational institution as paid on the date the institution credits the student's account.
Student withdraws from class(es).
You can claim a lifetime learning credit for qualified education expenses not refunded when a student withdraws.
Qualified Education Expenses
For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required
for enrollment in a
course at an eligible educational institution. The course must be either part of a postsecondary degree program or taken by
the student to acquire or
improve job skills.
Eligible educational institution.
An eligible educational institution is any college, university, vocational school, or other postsecondary educational
institution eligible to
participate in a student aid program administered by the Department of Education. It includes virtually all accredited public,
nonprofit, and
proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be able to tell
you if it is an eligible
educational institution.
Certain educational institutions located outside the United States also participate in the U.S. Department of Education's
Federal Student Aid (FSA)
programs.
Related expenses.
Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education
expenses only if the fees
and expenses must be paid to the institution as a condition of enrollment or attendance. For examples, see Related expenses in chapter 2
under Qualified Education Expenses.
Gulf Opportunity Zone students (GOZ students).
The definition of qualified education expenses for a GOZ student has been expanded. In addition to tuition and fees
required for the student's
enrollment or attendance at an eligible educational institution, qualified education expenses for a GOZ student include the
following.
-
Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution.
-
For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational
institution.
-
For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the
costs are not
more than the greater of the following two amounts.
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The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of
attendance (for
federal financial aid purposes) for a particular academic period and living arrangement of the student.
-
The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution.
You will need to contact the eligible educational institution for qualified room and board costs.
For more information, see Form 8863.
No Double Benefit Allowed
You cannot do any of the following:
-
Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim a lifetime
learning credit
based on those same expenses.
-
Claim a lifetime learning credit in the same year that you are claiming a tuition and fees deduction for the same student.
-
Claim a lifetime learning credit and a Hope credit based on the same qualified education expenses.
-
Claim a lifetime learning credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell
education
savings account (ESA) or qualified tuition program (QTP). See Coordination With Hope and Lifetime Learning Credits in chapter 7 (Coverdell
ESA) and chapter 8 (QTP).
-
Claim a credit based on qualified education expenses paid with a tax-free scholarship, grant, or employer-provided educational
assistance.
See Adjustments to Qualified Education Expenses, later.
Adjustments to Qualified Education Expenses
If you pay qualified education expenses with certain tax-free funds, you cannot claim a credit for those amounts. You must
reduce the qualified
education expenses by the amount of any tax-free educational assistance and refund(s) you received.
Tax-free educational assistance.
This includes:
-
The tax-free part of scholarships and fellowships (see chapter 1),
-
Pell grants (see chapter 1),
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Employer-provided educational assistance (see chapter 11),
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Veterans' educational assistance (see chapter 1), and
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Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance.
Refunds.
Qualified education expenses do not include expenses for which you, or someone else who paid qualified education expenses
on behalf of a student,
receive a refund. (For information on expenses paid by a dependent student or third party, see Who Can Claim a Dependent's Expenses, later
in this chapter.)
If a refund of expenses paid in 2006 is received before you file your tax return for 2006, simply reduce the amount
of the expenses paid by the
amount of the refund received. If the refund is received after you file your 2006 tax return, see When Must the Credit Be Repaid
(Recaptured), later.
You are considered to receive a refund of expenses when an eligible educational institution refunds loan proceeds
to the lender on behalf of the
borrower. Depending on when you are considered to receive the refund, follow the above instructions or see When Must the Credit Be Repaid
(Recaptured), later.
Amounts that do not reduce qualified education expenses.
Do not reduce qualified education expenses by amounts paid with funds the student receives as:
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Payment for services, such as wages,
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A loan,
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A gift,
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An inheritance, or
-
A withdrawal from the student's personal savings.
Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's
tax return in the following
situations.
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The use of the money is restricted to costs of attendance (such as room and board) other than qualified education expenses.
-
The use of the money is not restricted and is used to pay education expenses that are not qualified (such as room and board).
For examples, see Adjustments to Qualified Education Expenses in chapter 2.
Expenses That Do Not Qualify
Qualified education expenses do not include amounts paid for:
-
Insurance,
-
Medical expenses (including student health fees),
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Room and board,
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Transportation, or
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Similar personal, living, or family expenses.
This is true even if the amount must be paid to the institution as a condition of enrollment or attendance.
Sports, games, hobbies, and noncredit courses.
Qualified education expenses generally do not include expenses that relate to any course of instruction or other education
that involves sports,
games or hobbies, or any noncredit course. However, if the course of instruction or other education is part of the student's
degree program or is
taken by the student to acquire or improve job skills, these expenses can qualify.
Comprehensive or bundled fees.
Some eligible educational institutions combine all of their fees for an academic period into one amount. If you do
not receive or do not have
access to an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses,
such as those listed
above, contact the institution. The institution is required to make this allocation and provide you with the amount you paid
(or were billed) for
qualified education expenses on Form 1098-T, Tuition Statement. See Figuring the Credit, later, for more information about Form 1098-T.
Figure 3-1. Can You Claim the Lifetime Learning Credit for 2006? Summary: This flowchart is used to determine if you* qualify to claim the lifetime learning credit for 2005.Start. This is the start of the flowchart.Decision (1). Did you* pay qualified education expenses in 2005 for an eligible student?
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IF YES continue to Decision (2)
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IF NO continue to Process (a)
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Decision (2). Did the academic period for which you paid qualified education expenses begin in 2005 or the first 3 months of 2005?
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IF YES continue to Decision (3)
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IF NO continue to Process (a)
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Decision (3). Is the eligible student you, your spouse (if married filing jointly), or your dependent for whom you claim an exemption on
your tax
return?
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IF YES continue to Decision (4)
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IF NO continue to Process (a)
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Decision (4). Are you listed as a dependent on another person's tax return?
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IF YES continue to Process (a)
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IF NO continue to Decision (5)
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Decision (5). Is your filing status married filing separately?
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IF YES continue to Process (a)
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IF NO continue to Decision (6)
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Decision (6). Were you (or your spouse) a nonresident alien for any part of 2005 who did not elect to be treated as a resident alien for
tax
purposes?
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IF YES continue to Process (a)
|
|
IF NO continue to Decision (7)
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Decision (7). Is your modified adjusted gross income (MAGI) less than $53,000 ($107,000 if married filing jointly)?
|
IF YES continue to Decision (8)
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IF NO continue to Process (a)
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Decision (8). Do you have a tax liability (Form 1040, line 46 minus lines 47, 48, and 49) (Form 1040A, line 28 minus lines 29 and 30)?
|
IF YES continue to Decision (9)
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|
IF NO continue to Process (a)
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Decision (9). Did you claim a lifetime learning credit or a tuition and fees deduction for the same student?
|
IF YES continue to Process (a)
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IF NO continue to Decision (10)
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Decision (10). Did you use the same expenses to claim a deduction or credit, or to figure the tax-free portion of a Coverdell ESA or QTP
distribution?
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IF YES continue to Process (a)
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|
IF NO continue to Decision (11)
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Decision (11). Were the same expenses paid with tax-free scholarship, fellowship, grant, or employer-provided educational assistance?
|
IF YES continue to Process (a)
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|
IF NO continue to Decision (12)
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Decision (12). Did you, or someone else who paid these expenses on behalf of a student, receive a refund of all the expenses?
|
IF YES continue to Process (a)
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|
IF NO continue to Process (b)
|
Process (a). You cannot claim the lifetime learning credit for 2005.
Process (b). You can claim the lifetime learning credit for 2005.
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Continue to End
|
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*If you claim an exemption for your dependent, qualified education expenses paid by your dependent or by a third party for
your dependent are
considered paid by you.
|
End. *Qualified education expenses paid by your dependent or by a third party for your dependent are considered paid by you.This
is the end of the flowchart.
Who Is an Eligible Student
For purposes of the lifetime learning credit, an eligible student is a student who is enrolled in one or
more courses at an eligible educational institution (as defined under Qualified Education Expenses, earlier).
Who Can Claim a Dependent's Expenses
If there are qualified education expenses for your dependent for a year, either you or your
dependent, but not both of you, can claim a lifetime learning credit for your dependent's expenses for that year.
For you to claim a lifetime learning credit for your dependent's expenses, you must also claim an exemption for your dependent.
You do this by
listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c.
|
IF you...
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THEN only...
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|
claim an exemption on your tax return for a dependent who is an eligible student
|
you can claim the lifetime learning credit based on that dependent's expenses. The dependent cannot claim the
credit.
|
|
do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled
to the exemption)
|
the dependent can claim the lifetime learning credit. You cannot claim the credit based on this dependent's
expenses.
|
Expenses paid by dependent.
If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid
(or deemed paid) by your
dependent as if you had paid them. Include these expenses when figuring the amount of your lifetime learning credit.
Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved
divorce decree are
treated as paid by your dependent.
Expenses paid by you.
If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when
figuring the amount of the
lifetime learning credit. If neither you nor anyone else claims an exemption for the dependent, only the dependent can include
any expenses you paid
when figuring the lifetime learning credit.
Expenses paid by others.
Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly
to an eligible educational
institution to pay for an eligible student's qualified education expenses. In this case, the student is treated as receiving
the payment from the
other person and, in turn, paying the institution. If you claim an exemption on your tax return for the student, you are considered
to have paid the
expenses.
Example.
In 2006, Ms. Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education
expenses. For
purposes of claiming a lifetime learning credit, Todd is treated as receiving the money as a gift from his grandmother and,
in turn, paying his
qualified education expenses himself.
Unless an exemption for Todd is claimed on someone else's 2006 tax return, only Todd can use the payment to claim a lifetime
learning credit.
If anyone, such as Todd's parents, claims an exemption for Todd on his or her 2006 tax return, whoever claims the exemption
may be able to use the
expenses to claim a lifetime learning credit. If anyone else claims an exemption for Todd, Todd cannot claim a lifetime learning
credit.
Tuition reduction.
When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse
or dependent child of an
employee), the amount of the reduction may or may not be taxable. If it is taxable, the employee is treated as receiving a
payment of that amount and,
in turn, paying it to the educational institution on behalf of the student. For more information on tuition reductions, see
Qualified Tuition
Reduction in chapter 1.
The amount of the lifetime learning credit is 20% of the first $10,000 of qualified education expenses
you paid for all eligible students. The maximum amount of lifetime learning credit you can claim for 2006 is $2,000 (20% ×
$10,000). However,
that amount may be reduced based on your modified adjusted gross income (MAGI). See Effect of the Amount of Your Income on the Amount of Your
Credit below.
Example.
Bruce and Toni Harper are married and file a joint tax return. For 2006, their MAGI is $75,000. Toni is attending a local
college (an eligible
educational institution) to earn credits toward a degree in nursing. She already has a bachelor's degree in history and wants
to become a nurse. In
August 2006, Toni paid $6,000 of qualified education expenses for her Fall 2006 semester. Bruce and Toni can claim a $1,200
(20% × $6,000)
lifetime learning credit on their 2006 joint tax return.
Form 1098-T.
To help you figure your lifetime learning credit, you should receive Form 1098-T. Generally, an eligible educational
institution (such as a college
or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2007. An institution
may choose to report
either payments received (box 1), or amounts billed (box 2), for qualified education expenses. In addition, your Form 1098-T
should give you other
information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements
or refunds, and
whether you were enrolled at least half-time or were a graduate student.
The eligible educational institution may ask for a completed Form W-9S, Request for Student's or Borrower's Taxpayer
Identification Number and Certification, or similar statement to obtain the student's name, address, and taxpayer identification
number.
Gulf Opportunity Zone students (GOZ students).
The lifetime learning credit rate for a GOZ student is increased from 20% to 40%.
Effect of the Amount of Your Income on the Amount of Your Credit
The amount of your lifetime learning credit is phased out (gradually reduced) if your modified adjusted gross income (MAGI)
is between $45,000 and
$55,000 ($90,000 and $110,000 if you file a joint return). You cannot claim a lifetime learning credit if your MAGI is $55,000
or more ($110,000 or
more if you file a joint return).
Modified adjusted gross income (MAGI).
For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return.
MAGI when using Form 1040A.
If you file Form 1040A, your MAGI is the AGI on line 22 of that form.
MAGI when using Form 1040.
If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any:
-
Foreign earned income exclusion,
-
Foreign housing exclusion,
-
Exclusion of income for bona fide residents of American Samoa, and
-
Exclusion of income from Puerto Rico.
You can use Worksheet 3-1
to figure your MAGI.
|
Worksheet 3-1.
|
MAGI for the Lifetime
Learning Credit |
|
1.
|
Enter your adjusted gross income
(Form 1040, line 38)
|
|
1.
|
|
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2.
|
Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form
2555-EZ, line 18)
|
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2.
|
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3.
|
Enter the amount of income from Puerto Rico that you are excluding
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3.
|
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4.
|
Enter the amount of income from American Samoa that you are excluding (Form 4563,
line 15)
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4.
|
|
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|
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5.
|
Add the amounts on
lines 2, 3, and 4
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5.
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6.
|
Add the amounts on lines 1 and 5.
This is your modified adjusted
gross income. Enter this amount
on Form 8863, line 9
|
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6.
|
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Phaseout.
If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit
using lines 7-13 of Form
8863. The same method is shown in the following example.
Example.
Bruce and Toni Harper have a MAGI of $100,000 on their joint return.
They figure the tentative lifetime learning credit (20% of the first $10,000 of qualified education expenses they paid for
all eligible students).
The result is a $1,200 (20% x $6,000) tentative credit.
Because the Harpers' MAGI is within the range of incomes where the credit must be reduced, they must multiply their tentative
credit ($1,200) by a
fraction. The numerator of the fraction is $110,000 (the upper limit for those filing a joint return) minus their MAGI. The
denominator is $20,000,
the range of incomes for the phaseout ($90,000 to $110,000). The result is the amount of their phased out (reduced) lifetime
learning credit ($600).
You claim the lifetime learning credit by completing Parts II and III of Form 8863 and submitting it with your Form 1040 or
1040A. Enter the credit
on Form 1040, line 50, or Form 1040A, line 31. A filled-in Form 8863 is shown at the end of this chapter.
When Must the Credit Be Repaid (Recaptured)
If, after you file your 2006 tax return, you or someone else receives tax-free educational
assistance for, or a refund of, an expense you used to figure a lifetime learning credit on that return, you may have to repay
all or part of the
credit. You must refigure your lifetime learning credit for 2006 as if the assistance or refund was received in 2006. Subtract
the amount of the
refigured credit from the amount of the credit you claimed. The result is the amount you must repay. You add the repayment
(recapture) to your tax
liability for the year in which you receive the assistance or refund (see the instructions for your tax return for that year).
Your original 2006 tax
return does not change.
Judy Green, a single taxpayer, is taking courses at a community college to be recertified to teach in public schools. Her
MAGI is $23,000. Her tax,
before credits, is $1,904. In July 2006 she pays $700 for the Summer 2006 semester; in August 2006 she pays $1,900 for the
Fall 2006 semester; and in
December 2006 she pays another $1,900 for the Spring semester beginning January 2007. Judy and the college meet all the requirements
for the lifetime
learning credit. She can use all of the $4,500 tuition she paid in 2006 when figuring her credit for her 2006 tax return.
She figures her credit as
shown on the filled-in Form 8863 on the next page.
Note.
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.
Form 8863 Education Credits (Hope and Lifetime Learning Credits) 2006. Summary: This is an example of Form 8863 (2005) as pertains to the description in the text. The line items completed are:
|
“Name(s) shown on return” field contains Judy Green
|
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“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)”
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|
“First name” field contains Judy
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“Last name” field contains Green
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|
“3b. Student's social security number (as shown on page 1 of your tax return)” field contains 000-00-7777
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“3c. Qualified expenses. See instructions” field contains 4,500
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“4. Add the amounts on line 3, column (c), and enter the total” field contains 4,500
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“5. Enter the smaller of line 5 or $5,000” field contains 4,500
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“6. Tentative lifetime learning credit. Multiply line 5 by 20% (.20) and go to Part III” field contains
900
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Under
“Part III: Allowable Education Credits”:
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|
“7. Tentative education credits. Add lines 3 and 7” field contains 900
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“8. Enter: $105,000 if married filing jointly; $53,000 if single, head of household, or qualifying widow(er)” field contains
52,000
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“10. Enter the amount from Form 1040, line 38, or Form 1040A, line 22” field contains 24,000
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“10. Subtract line 9 from line 8. If line 9 is equal to or more than line 8, stop; you cannot take any education credits” field
contains 29,000
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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
10,000
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“13. Multiply line 7 by line 12” field contains 900
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“14. Enter the amount from Form 1040, line 46, or Form 1040A, line 28” field contains 1,904
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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. Enter the amount from Form 6251, line 31” field contains 0
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“17. Add lines 15 and 16” field contains 0
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“18. Subtract line 17 from line 16. If zero or less, stop; you cannot take any education credits” field contains 1,904
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“19. Education credits. Enter the smaller of line 13 or line 18 here and on Form 1040, line 49, or Form 1040A, line 31” field contains
900
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