What is the difference between IRS form 8863 and 8917?
IRS Form 8917 and Form 8863 both deal with education expenses. Form 8917 offers a tax deduction called the Tuition and Fees Deduction, while Form 8863 offers two tax credits. The two tax credits you can claim on Form 8863 are the American Opportunity Tax Credit and the Lifetime Learning Credit.
What is the tuition and fees deduction on form 8917?
The IRS doesn’t let you deduct every dollar you pay in tuition, nor is it available to all taxpayers. Form 8917 puts a limit on your annual deduction, which is $4,000 for the 2020 tax year. If you pay more than this, the excess is not deductible and cannot be used in a future tax year.
Should I take tuition and fees deduction or education credit?
The educational tax credits offer a bigger tax break to students and parents, but are harder to qualify for. The tuition and fees deduction also offers a savings, but parents can’t claim expenses they pay on behalf of their children.
Where do I get Form 8917?
▶ Go to www.irs.gov/Form8917 for the latest information. Use this form for qualified tuition and fees paid in 2018, 2019, or 2020, and later years if legislation extends the deduction (see instructions). File a separate Form 8917 for each year after 2017 for which you qualify to take the deduction.
Is the tuition and fees deduction available for 2021?
For your 2021 taxes, the American Opportunity Tax Credit: Can be claimed in amounts up to $2,500 per student, calculated as 100% of the first $2,000 in college costs and 25% of the next $2,000. May be used toward required course materials (books, supplies and equipment) as well as tuition and fees.
Where do I get form 8917?
What is the tuition deduction for 2020?
The Tuition and Fees Deduction allows eligible taxpayers to deduct up to $4,000 in qualified higher education expenses for themselves, a spouse and dependent children as an above-the-line exclusion from income.
What are education credits Form 8863?
Use Form 8863 to figure and claim your education credits, which are based on qualified education expenses paid to an eligible postsecondary educational institution. There are two education credits. The American Opportunity Credit, part of which may be refundable. The Lifetime Learning Credit, which is nonrefundable.
What is form 8917 used for?
What is an 8917 Form? Form 8917 is used to claim a tuition & fees deduction and is filed with your 1040. The deduction can be up to $4,000 (depending on income and expense amounts) and is based on qualified education expenses paid to an eligible post secondary educational institution.
When to use form 8917?
IRS Form 8917 allows you to take a tuition and fee deduction on a qualifying post-secondary course. When you enroll into a post-secondary school course, the school will send you Form 1098-T. This form will allow you to file your tuition and fees deduction. You will only be allowed to deduct the amount stated on the Form 1098-T.
When will form 8917 be available?
Form 8917 (Rev. January 2020) Tuition and Fees Deduction Department of the Treasury years, with larger print and available for taxpayers 65 years or older. Although it’s often mentioned with Form 1040 on Form 8917 and in these instructions, it isn’t available for 2018.
Which IRS Form is right for my tax return?
The news will be a relief for many still struggling with coronavirus discruption – but it’s a good idea to file you return on the IRS’ website. You’ll need your filing status, which is linked to your marital status and sorts which tax form you