You’ll need three main forms to apply for the AOTC and/or the LLC:
- Form 1098-T, Tuition Statement
- Form 8863
- Schedule 3 of the 1040 tax form
Your educational institution provides you with Form 1098-T, which documents all your tuition expenses. It’s important to note, however, that not all the expenses listed may be eligible for the claim.
Form 8863 constitutes the actual application for the tax credits. You can apply for both the AOTC and the LLC with this form, which includes details about eligibility requirements, filing due dates and other crucial information. This will help you figure out how much of the expenses listed on Form 1098-T you can claim. You can find this form on the IRS website.
Finally, the amount of tax credit you claim on Form 8863 must be reflected in Schedule 3 of the 1040 tax form. You can find the field for this information under the title Part I: Nonrefundable Credits in the third listed field titled, “Education credits from Form 8863, line 19.” You can find this form on the IRS website.
For a more comprehensive overview of tax benefits connected to education expenses, consult Publication 970 (2021), Tax Benefits for Education | Internal Revenue Service (irs.gov).
While filling out the forms can be a bit of a hassle, it’s certainly worth it for the money saved and the education earned. Don’t miss out on these opportunities to make your degree more affordable!
Now that you understand how tax credits can apply toward your education, discover how University of Phoenix can help save you both time and money toward your degree. Click here!