The IRS does not allow claiming both credits for the same student in the same tax year.
Steps to Fix the Error in TaxWise
Open the Tax Return
Launch TaxWise and open the affected return.
Navigate to Form 8863
Locate Form 8863 - Education Credits (AOTC & LLC) in the forms list.
Review the Student’s Entries
Scroll to Page 2 of Form 8863.
Check the student's name and the amounts entered on:
Line 27 (for the AOTC)
Line 31 (for the LLC)
If both lines have amounts for the same student, this triggers the error.
Determine Eligibility for AOTC or LLC
Use AOTC (Line 27) if the student qualifies:
✅ Enrolled at least half-time in a degree or certificate program
✅ First four years of higher education
✅ Maximum credit: $2,500 (partially refundable)Use LLC (Line 31) if AOTC doesn’t apply:
✅ Available for any level of education
✅ No enrollment requirement (can be part-time)
✅ Maximum credit: $2,000 (non-refundable)
Correct the Entry
Keep only one credit per student based on eligibility.
If the student qualifies for AOTC, remove the amount from Line 31 (LLC).
If the student qualifies for LLC, remove the amount from Line 27 (AOTC).
Validate the Return
Run Diagnostics in TaxWise to check for errors.
Ensure only one education credit is applied per student.
Save and Resubmit
After making corrections, save the return and proceed with filing.
Key Takeaways
✅ A student cannot claim both AOTC and LLC in the same tax year.
✅ AOTC is for undergraduate students (first 4 years) and is partially refundable.
✅ LLC applies to all levels of education but is non-refundable.
✅ Correct Form 8863 by entering amounts on either Line 27 (AOTC) or Line 31 (LLC), not both.
By following these steps, the issue will be resolved, and the return can be filed successfully! 🚀