Common questions for Form 8863 Education Credits in Lacerte

The following articles are the top questions referring to Education Credits, Form 8863:

• Entering amounts in Form 1098-T and generating Form 8863 in Lacerte
• Optimization between the tuition and fees deduction and the education credit in Lacerte
• Form 1098-T Box 5 scholarship or grant input for Form M1PR Line 5

Future changes for tax year 2026

For tax years beginning after December 31, 2025, a taxpayer must provide a Social Security number (SSN) to claim the American Opportunity Credit (AOTC) or Lifetime Learning Credit (LLC). These changes will go in effect for tax year 2026.

For tax year 2021:

• Tuition and Fees Deduction (Form 8917) has been repealed starting in Tax Year 2021.
• American Opportunity Credit & Lifetime Learning Credit (Form 8863) changes:
  • Expanded Lifetime Learning Credit to phase outs that mirror American Opportunity Credit in 2021
  • MAGI phase out range --$160,000 --$180,000 married filing joint; $80,000 --$90,000 other filers