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