5329 Additional Taxes on Qualified Plans (Including IRAs) and

Caution: DRAFT FORM
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It is subject to change and OMB approval before it
is officially released. You can check the scheduled
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submit them to us on our web site. Include the word
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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8863, PAGE 1 OF 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE, WRITING, SUB. 20 INK: BLACK
FLAT SIZE: 432mm (17") x 279mm (11") FOLD TO: 216mm (81⁄ 2 ") x 279mm (1")
PERFORATE: ON THE FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Date

Form

8863

Action

Date

O.K. to print
Revised proofs
requested

OMB No. 1545-0074

Education Credits
(Hope and Lifetime Learning Credits)

2006

f
o
s
a
6
t
0
f
0
a
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/
D /19
7
0
©

Department of the Treasury
Internal Revenue Service (99)

©

Name(s) shown on return

Signature

See instructions.
Attach to Form 1040 or Form 1040A.

Attachment
Sequence No.

50

Your social security number

Caution: You cannot take the Hope credit and the lifetime learning credit for the same student in the same year.

Part I
1

Hope Credit. Caution: You cannot take the Hope credit for more than 2 tax years for the same student.
(a) Student’s name
(as shown on page 1
of your tax return)
First name
Last name

(b) Student’s
social security
number (as
shown on page 1
of your tax return)

(c) Qualified
expenses (see
instructions). Do
not enter more
than $2,200* for
each student.

(d) Enter the
smaller of the
amount in
column (c) or
$1,100**

(e) Add
column (c) and
column (d)

(f) Enter one-half
of the amount in
column (e)

* For each student who attended an eligible educational institution in the Gulf Opportunity Zone, do not enter more than $4,400.
** For each student who attended an eligible educational institution in the Gulf Opportunity Zone, enter the smaller of the amount in
column (c) or $2,200.

2

Tentative Hope credit. Add the amounts on line 1, column (f). If you are taking the lifetime learning
©
credit for another student, go to Part II; otherwise, go to Part III

Part II

(a) Student’s name (as shown on page 1 of your tax return)

3
First name

(b) Student’s social security
number (as shown on page
1 of your tax return)

Last name

4 Add the amounts on line 3, column (c), and enter the total
5a Enter the smaller of line 4 or $10,000
b For students who attended an eligible educational institution in the Gulf Opportunity Zone, enter
the smaller of $10,000 or their qualified expenses included on line 4 (see special rules on page 3)
c Subtract line 5b from line 5a
6a Multiply line 5b by 40% (.40)
b Multiply line 5c by 20% (.20)
c Tentative lifetime learning credit. Add lines 6a and 6b and go to Part III

Part III
7
8
9
10
11
12

13
14
15
16
17

2

Lifetime Learning Credit
(c) Qualified
expenses (see
instructions)

4
5a
5b
5c
6a
6b
6c

Allowable Education Credits

Tentative education credits. Add lines 2 and 6c
Enter: $110,000 if married filing jointly; $55,000 if single, head of household,
or qualifying widow(er)
Enter the amount from Form 1040, line 38*, or Form 1040A, line 22
Subtract line 9 from line 8. If zero or less, stop; you cannot take any
education credits
Enter: $20,000 if married filing jointly; $10,000 if single, head of household,
or qualifying widow(er)

7
8
9
10
11

If line 10 is equal to or more than line 11, enter the amount from line 7 on line 13 and go to
line 14. If line 10 is less than line 11, divide line 10 by line 11. Enter the result as a decimal
(rounded to at least three places)
©
Multiply line 7 by line 12
Enter the amount from Form 1040, line 46, or Form 1040A, line 28
Enter the total, if any, of your credits from Form 1040, lines 47 through 49,
15
or Form 1040A, lines 29 and 30
Subtract line 15 from line 14. If zero or less, stop; you cannot take any
16
education credits
Education credits. Enter the smaller of line 13 or line 16 here and on Form 1040, line 50, or Form
1040A, line 31

12
13
14

3 .

17

* If you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from Puerto Rico, see Pub. 970 for the amount to enter.

For Paperwork Reduction Act Notice, see page 4.

Cat. No. 25379M

Form

8863

(2006)