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 Jim Grant

“Your social security number” field contains 000-00-4321

Under“Part I: Hope Credit.”:

“1a. Student's name (as shown on page 1 of your tax return)”

“First name” field contains Jim

“Last name” field contains Grant

“1b. Student's social security number (as shown on page 1 of your tax return)” field contains 000-00-4321

“1c. Qualified expenses (see instructions). Do not enter more than $2,400* for each student. ” field contains 2,400

For note, continue to Footnote 1.

“1d. Enter the smaller of the amount in column (c) or $1,200**” field contains 1,200

For note, continue to Footnote 2.

“1e. Add column (c) and column (d)” field contains 3,600

“1f. Enter one-half of the amount in column (e)” field contains 1,800

“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 1,800

Under“Part III: Allowable Education Credits”:

“7. Tentative education credits. Add lines 2 and 6c” field contains 1,800

“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 37,000

“10. Subtract line 9 from line 8. If zero or less, stop; you cannot take any education credits” field contains 21,000

“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 1,800

“14. Enter the amount from Form 1040, line 46, or Form 1040A, line 28” field contains 3,700

“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 3,700

“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 1,800

Footnote 1: For each student who attended an eligible educational institution in a Midwestern disaster area, do not enter more than $4,800.

Footnote 2: For each student who attended an eligible educational institution in a Midwestern disaster area, enter the smaller of the amount in column (c) or $2,400.