Step 1: Add Form 8863 Page 2
Click the + icon to add Form 8863 Page 2 to the tax return.
Step 2: Enter Student Information
Input the student's name and SSN.
Note: The student must be the taxpayer, spouse, or a dependent listed on the return to qualify for the credit.
Step 3: Enter Educational Institution Information
Enter the Educational Institution's name exactly as it appears on the 1098-T form.
Provide the institution's EIN (Employer Identification Number).
Step 4: Answer Qualification Questions
Did the student receive this form for the current tax year?
If yes, select Yes.
If no, select No.
Did the student receive a 1098-T for the previous year with Box 7 checked?
If yes, select Yes.
If no, select No.
Step 5: Enter Multiple 1098-Ts (If Applicable)
If the student received multiple 1098-Ts from different institutions, enter:
The Educational Institution's name.
The Institution's EIN (from the 1098-T).
Answer Yes or No to Question 3 (if Box 7 was checked on the prior year’s form).
Step 6: Determine Education Credit Eligibility
Has the student already claimed the American Opportunity Credit (AOC) in the last 4 years?
If Yes, they are only eligible for the LLC.
If No, they may qualify for the AOC or LLC.
Was the student enrolled at least half-time for at least one academic period during the tax year? (Box 8 on 1098-T)
If No, they are only eligible for the LLC.
Did the student complete their undergraduate degree or first 4 years of college before the tax year? (Box 9 on 1098-T)
If Yes, they are only eligible for the LLC.
Step 7: Enter Qualified Expenses
Enter the amount from Box 1 of the 1098-T.
If there’s an amount in Box 5 (Scholarships/Grants):
Use the formula: Box 1 - Box 5 = Eligible Amount.
Up to $4,000 can be entered on Line 27.
Step 8: Save the Return
The software will automatically determine which credit the student qualifies for.
Line 31 will reflect the Lifetime Learning Credit (LLC) if applicable.
For a visual guide, refer to this step-by-step walkthrough: Tutorial: How to Enter a 1098-T