U.S. Individual Income Tax Return

Userid: ________

PAGER/SGML
Page 1 of 6

Fileid:

DTD INSTR04

Leadpct: %

Pt. size: 9

...\Users\d81db\documents\Epicfiles\2009\i8863\09i8863 - 12172009.sgm

Instructions for Form 8863

❏

Draft

❏

Ok to Print

(Init. & date)

15:17 - 17-DEC-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2009

Department of the Treasury
Internal Revenue Service

Instructions for Form 8863
Education Credits (American Opportunity, Hope, and Lifetime Learning Credits)
Section references are to the Internal Revenue Code unless
otherwise noted.

General Instructions
What’s New
American opportunity credit. This new education tax credit
(a modification of the Hope credit) is available for 2009 and
2010. The maximum credit per student is $2,500 (100% of the
first $2,000 and 25% of the next $2,000 of qualified education
expenses). The credit is available for the first 4 years of
postsecondary education and 40% of the credit (up to $1,000)
is refundable for many taxpayers. The amount of your credit for
2009 is gradually reduced (phased out) if your modified
adjusted gross income (MAGI) is between $80,000 and $90,000
($160,000 and $180,000 if you file a joint return). You cannot
claim this credit if your MAGI is $90,000 or more ($180,000 or
more if you file a joint return). Taxpayers with at least one
student attending an eligible educational institution in a

Midwestern disaster area may elect to continue to claim the
Hope credit for all students based on the previous Hope credit
rules.
Income limits increased for Hope and lifetime learning
credits. The amount of your tentative Hope and lifetime
learning credits for 2009 is gradually reduced (phased out) if
your MAGI is between $50,000 and $60,000 ($100,000 and
$120,000 if you file a joint return). You cannot claim these
credits if your MAGI is $60,000 or more ($120,000 or more if
you file a joint return).

Purpose of Form
Use Form 8863 to figure and claim your education credits,
which are based on qualified education expenses paid to an
eligible postsecondary educational institution. For 2009, there
are three education credits.
• The American opportunity credit, part of which may be
refundable. Complete Parts I, IV, and V.
• The Hope credit, which is nonrefundable and only for
taxpayers with at least one student attending an eligible

Table 1. Comparison of Education Credits
Caution. If you have more than one student eligible for the American opportunity credit or the Hope credit, you must claim the same
credit for all eligible students. You cannot claim both the American opportunity credit and the Hope credit on the same tax return.
However, you can claim both the American opportunity credit and the lifetime learning credit, or the Hope credit and the lifetime learning
credit on the same return — but not for the same student.
American Opportunity Credit – NEW

Hope Credit*

Lifetime Learning Credit

Maximum credit

Up to $2,500 credit per eligible student Up to $1,800 ($3,600 if a student in a
Midwestern disaster area) credit per
eligible student

Up to $2,000 ($4,000 if a student in a
Midwestern disaster area) credit per
return

Limit on modified
adjusted gross
income (MAGI)

$180,000 if married filling jointly;
$90,000 if single, head of household, or
qualifying widow(er)

$120,000 if married filling jointly;
$60,000 if single, head of household, or qualifying widow(er)

Refundable or
nonrefundable

40% of credit may be refundable; the
rest is nonrefundable

Nonrefundable — credit limited to the amount of tax you must pay on your taxable
income

Number of years
of postsecondary
education

Available ONLY for the first 4 years of
postsecondary education

Available ONLY for the first 2 years of
postsecondary education

Available for all years of postsecondary
education and for courses to acquire or
improve job skills

Number of tax
years credit
available

Available ONLY for 4 tax years per
eligible student (including any year(s)
Hope credit was claimed)

Available ONLY for 2 tax years per
eligible student

Available for an unlimited number of
years

Type of degree
required

Student must be pursuing an undergraduate degree or other recognized education Student does not need to be pursuing a
credential
degree or other recognized education
credential

Number of
courses

Student must be enrolled at least half time for at least one academic period
beginning during the year

Available for one or more courses

Felony drug
conviction

No felony drug convictions on student’s records

Felony drug convictions are permitted

Qualified
expenses

Tuition and required enrollment fees.
Tuition and required enrollment fees (including amounts required to be paid to the
Course-related books, supplies, and
institution for course-related books, supplies, and equipment). Additional expenses
equipment do not need to be purchased allowed for students in Midwestern disaster areas.
from the institution in order to qualify.

Payments for
academic periods

Payments made in 2009 for academic periods beginning in 2009 and in the first 3 months of 2010

* You can claim the Hope credit only if at least one eligible student is attending an eligible educational institution in a Midwestern disaster area (see Table 2 on
page 6 for a list of qualifying disaster areas).

Cat. No. 53002G

Page 2 of 6

Instructions for Form 8863

15:17 - 17-DEC-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

educational institution in a Midwestern disaster area who elect
not to claim the American opportunity credit for any student.
Complete Parts II and V.
• The lifetime learning credit, which is nonrefundable.
Complete Parts III and V.
A refundable credit can give you a refund for any part of the
credit that is more than your total tax. A nonrefundable credit
can reduce your tax, but any excess is not refunded to you.
Each of these credits has different rules that can affect your
eligibility to claim a specific credit. These differences are shown
in Table 1 on page 1.

Qualified Education Expenses
Generally, qualified education expenses are amounts paid in
2009 for tuition and fees required for the student’s enrollment or
attendance at an eligible educational institution. It does not
matter whether the expenses were paid in cash, by check, by
credit card, or with borrowed funds.
Only certain expenses for course-related books, supplies,
and equipment qualify.
• American opportunity credit: Qualified education expenses
include amounts spent on books, supplies, and equipment
needed for a course of study, whether or not the materials are
purchased from the educational institution as a condition of
enrollment or attendance.
• Hope and lifetime learning credits: Qualified education
expenses include only amounts for books, supplies, and
equipment required to be paid to the institution as a condition of
enrollment or attendance.
Qualified education expenses do not include amounts paid
for:
• Room and board, insurance, medical expenses (including
student health fees), transportation, or other similar personal,
living, or family expenses.
• Any course or other education involving sports, games, or
hobbies, or any noncredit course, unless such course or other
education is part of the student’s degree program or (for the
lifetime learning credit only) helps the student acquire or
improve job skills.
• Nonacademic fees, such as student activity fees, athletic
fees, insurance expenses, or other expenses unrelated to the
academic course of instruction.
But see Special Rules for Students in Midwestern Disaster
Areas, on the next page, for certain exceptions.
You should receive Form 1098-T, Tuition Statement, from
the college or university reporting either payments received in
2009 (box 1) or amounts billed in 2009 (box 2). However, the
amounts in boxes 1 and 2 of Form 1098-T may be different than
what you actually paid. On Form 8863, lines 1, 3, and 5, enter
only the amounts you paid in 2009 for qualified expenses. See
chapters 2, 3, and 4 of Pub. 970 for more information on Form
1098-T.
If you or the student takes a deduction for higher education
expenses, such as on Schedule A or Schedule C (Form 1040),
you cannot use those same expenses when figuring your
education credits.

You may be able to take the tuition and fees deduction

TIP for you, your spouse, or a dependent, instead of an
education credit. Figure your tax both ways and choose
the one that gives you the lower tax. See Form 8917, Tuition
and Fees Deduction, and chapter 7 of Pub. 970, Tax Benefits
for Education, for more information about the tuition and fees
deduction.

Who Can Claim an Education Credit
You may be able to claim an education credit if you, your
spouse, or a dependent you claim on your tax return was a
student enrolled at or attending an eligible educational
institution. The credits are based on the amount of qualified
education expenses paid for the student in 2009 for academic
periods beginning in 2009 and in the first 3 months of 2010.
Qualified education expenses must be reduced by any
expenses paid directly or indirectly using tax-free
CAUTION educational assistance. See Tax-Free Educational
Assistance and Refunds of Qualified Education Expenses on
this page.
Who can claim a dependent’s expenses. If a student is
claimed as a dependent on another person’s tax return, only the
person who claims the student as a dependent can claim a
credit for the student’s qualified education expenses. If a
student is not claimed as a dependent on another person’s tax
return, only the student can claim a credit.
Generally, qualified education expenses paid on behalf of
the student by someone other than the student (such as a
relative) are treated as paid by the student. However, qualified
education expenses paid (or treated as paid) by a student who
is claimed as a dependent on your tax return are treated as
paid by you. Therefore, you are treated as having paid
expenses that were paid from your dependent student’s
earnings, gifts, inheritances, savings, etc.
Who cannot claim a credit. You cannot take an education
credit if any of the following apply.

!

Any qualified expenses used to figure the education
credits cannot be taken into account in determining the
CAUTION amount of a distribution from a Coverdell ESA or a
qualified tuition program (section 529 plan) that is excluded
from gross income. See Pub. 970, chapters 8 and 9, for more
information.

!

1. You are claimed as a dependent on another person’s tax
return, such as your parent’s return.
2. Your filing status is married filing separately.
3. You (or your spouse) were a nonresident alien for any part
of 2009 and did not elect to be treated as a resident alien.
4. Your MAGI is one of the following.
a. American opportunity credit: $180,000 or more if married
filing jointly, or $90,000 or more if single, head of
household, or qualifying widow(er).
b. Hope and lifetime learning credits: $120,000 or more if
married filing jointly, or $60,000 or more if single, head of
household, or qualifying widow(er).

Tax-Free Educational Assistance and Refunds
of Qualified Education Expenses
Tax-free educational assistance includes a tax-free scholarship
or Pell grant or tax-free employer-provided educational
assistance. See chapter 1 of Pub. 970 for specific information.
For all credits, you must reduce the total of your qualified
education expenses by any tax-free educational assistance and
by any refunds of your expenses. If the refund or tax-free
assistance is received in the same year in which the expenses
were paid or in the following year before you file your tax return,
simply reduce your qualified education expenses by the amount
received and figure your education credits using the reduced
amount of qualified expenses. If the refund or tax-free
assistance is received after you file your return for the year in
which the expenses were paid, you must recapture (repay) the
excess credit. You do this by figuring the amount by which your
education credits would have been reduced if the refund or
tax-free assistance had been received in the year for which you
claimed the education credits. Include that amount as an
additional tax for the year the refund or tax-free assistance was
received.

There are a number of factors, such as your filing status,

TIP your MAGI, and whether you are subject to the
alternative minimum tax, that will affect the amount of
any education credit you are eligible to claim. When you figure
your taxes, you may want to compare the different education
credits in order to choose the method(s) that gives you the
lowest tax liability. If you qualify, you may find that a
combination of credit(s) and other education benefit(s) gives
you the lowest tax. See Pub. 970 for information on other
benefits.

-2-

Page 3 of 6

Instructions for Form 8863

15:17 - 17-DEC-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Example. You paid $8,000 tuition and fees in December
2008 for your child’s spring semester beginning in January
2009. You filed your 2008 tax return on February 2, 2009, and
claimed a lifetime learning credit of $1,600 ($8,000 qualified
expenses paid x .20). After you filed your return, your child
dropped two courses and you received a refund of $1,400.

1. Books, supplies, and equipment required for enrollment or
attendance at an eligible educational institution.
2. For a special needs student, expenses that are necessary
for that person’s enrollment or attendance at an eligible
educational institution.
3. For a student who is at least a half-time student, the
reasonable costs of room and board, but only to the extent
that the costs are not more than the greater of the following
two amounts.
a. The allowance for room and board, as determined by the
eligible educational institution, included in the cost of
attendance (for federal financial aid purposes) for a
particular academic period and living arrangement of the
student.
b. The actual amount charged if the student is residing in
housing owned or operated by the eligible educational
institution.

You must refigure your 2008 lifetime learning credit using
$6,600 ($8,000 qualified expenses − $1,400 refund). The
refigured credit is $1,320. You must include the difference of
$280 ($1,600 credit originally claimed − $1,320 refigured credit)
on your 2009 Form 1040, line 44, or Form 1040A, line 28. Also,
enter “$280” and “ECR” in the space next to line 44 (if filing
Form 1040) or line 28 (Form 1040A).

Prepaid Expenses
Qualified education expenses paid in 2009 for an academic
period that begins in the first 3 months of 2010 can be used
only in figuring your 2009 education credits. For example, if you
pay $2,000 in December 2009 for qualified tuition for the 2010
winter quarter that begins in January 2010, you can use that
$2,000 in figuring your 2009 education credits (if you meet all
the other requirements).

!

You will need to contact the eligible educational institution for
qualified room and board costs.

Additional Information
See Pub. 970, chapters 2, 3, and 4, for more information about
these credits.

You cannot use any amount paid in 2008 or 2010 to
figure your 2009 education credit(s).

CAUTION

Specific Instructions

Eligible Educational Institution

Part I
American Opportunity Credit

An eligible educational institution is generally any accredited
public, nonprofit, or proprietary (private) college, university,
vocational school, or other postsecondary institution. Also, the
institution must be eligible to participate in a student aid
program administered by the Department of Education. Virtually
all accredited postsecondary institutions meet this definition.

You may be able to take a credit of up to $2,500 for qualified
education expenses (defined earlier) paid for each student who
qualifies for the American opportunity credit. This credit equals
100% of the first $2,000 and 25% of the next $2,000 of qualified
expenses paid for each eligible student. The amount of your
credit for 2009 is gradually reduced (phased out) if your MAGI
is between $80,000 and $90,000 ($160,000 and $180,000 if
you file a joint return). You cannot claim a credit if your MAGI is
$90,000 or more ($180,000 or more if you file a joint return).
Student qualifications. Generally, you can take the American
opportunity credit for a student if all of the following apply.
• As of the beginning of 2009, the student had not completed
the first 4 years of postsecondary education (generally, the
freshman through senior years of college), as determined by
the eligible educational institution. For this purpose, do not
include academic credit awarded solely because of the
student’s performance on proficiency examinations.
• The student was enrolled in 2009 in a program that leads to a
degree, certificate, or other recognized educational credential.
• The student was taking at least one-half the normal full-time
workload for his or her course of study for at least one
academic period beginning in 2009.
• The student has not been convicted of a felony for
possessing or distributing a controlled substance.
In addition, you cannot be claiming a Hope credit in Part II of
Form 8863 for any student in 2009.

Special Rules for Students in
Midwestern Disaster Areas
The following rules apply only to students attending an eligible
educational institution in a Midwestern disaster area in the
states of Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska,
and Wisconsin. See Table 2 on page 6 for the eligible counties.
All of the other rules discussed on pages 2 through 5 (as
modified by these rules) must still be met.
The Hope credit for students in Midwestern disaster areas is
100% of the first $2,400 of qualified education expenses and
50% of the next $2,400 of qualified education expenses for a
maximum credit of $3,600 per student. Complete Parts II and V
of Form 8863 to figure the increased Hope credit. The
maximum lifetime learning credit for students in Midwestern
disaster areas is $4,000 per return. Complete Parts III and V of
Form 8863 to figure the credit using the higher rate. There are
no increases for the American opportunity credit when claimed
for students in Midwestern disaster areas.
The definition of qualified education expenses is expanded
for students in Midwestern disaster areas. In addition to tuition
and fees required for enrollment or attendance at an eligible
educational institution, qualified education expenses for
students in Midwestern disaster areas include the following.

If all of the above conditions are not met, you may be

TIP able to take the lifetime learning credit for part or all of
that student’s qualified education expenses instead.

-3-

Page 4 of 6

Instructions for Form 8863

15:17 - 17-DEC-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• The student was taking at least one-half the normal full-time

Line 1

workload for his or her course of study for at least one
academic period beginning in 2009.
• The Hope credit was not claimed for that student’s expenses
in more than one prior tax year.
• The student has not been convicted of a felony for
possessing or distributing a controlled substance.
In addition, you must meet both of the following conditions.
• At least one student for whom you are claiming this credit
attended an eligible educational institution in a Midwestern
disaster area in 2009.
• You are not claiming the American opportunity credit for any
student in 2009.

Complete columns (a) through (f) on line 1 for each student who
qualifies for and for whom you elect to take the American
opportunity credit.
More than three students. If you are taking this credit for
more than three students, enter “See attached” next to line 1
and attach a statement with the required information for each
additional student. Include the amounts from line 1, column (f),
for all students in the total you enter on line 2.
Column (c). For each student, enter the amount of qualified
expenses remaining after reduction by certain tax-free
educational assistance and refunds of qualified educational
expenses, as explained under Qualified Education Expenses on
page 2. To get the credit for 2009, the expenses must have
been paid for the student in 2009 for academic periods
beginning after 2008 but before April 1, 2010, as explained
earlier on this page under Prepaid Expenses. If the student’s
expenses are more than $4,000, enter $4,000. You can use the
worksheet below to figure the correct amount to enter in column
(c).

If all of the above conditions are not met, you may be

TIP able to take the lifetime learning credit for part or all of a
student’s qualified education expenses instead.

Line 3
Complete columns (a) through (f) on line 3 for each student who
qualifies for and for whom you elect to take the Hope credit.
More than three students. If you are taking this credit for
more than three students, enter “See attached” next to line 3
and attach a statement with the required information for each
additional student. Include the amounts from line 3, column (f),
for all students in the total you enter on line 4.
Column (c). For each student, enter the amount of qualified
expenses remaining after reduction by certain tax-free
educational assistance and refunds, as explained under
Qualified Education Expenses on page 2. The expenses must
have been paid for the student in 2009 for academic periods
beginning after 2008 but before April 1, 2010, as explained
under Prepaid Expenses on page 3. If the student’s expenses
are more than $2,400 ($4,800 if a student in a Midwestern
disaster area), enter $2,400 ($4,800 if a student in a
Midwestern disaster area). You can use the worksheet below to
figure the correct amount to enter in column (c).

Qualified Education Expenses Worksheet
for Part I, Column (c)
(Do a separate worksheet for each student)
1. Total qualified education expenses . . . . . . .
2. Less adjustments:
a. Tax-free educational
assistance . . . . . . . . . . . .
b. Refunds of qualified
education expenses . . . . .
c. Other adjustments (see
Pub. 970, chapter 2) . . . . .
3. Total adjustments (add lines 2a – 2c) . . . . . .
4. Qualified education expenses. Subtract line 3
from line 1 and enter here. Also enter (but not
more than $4,000) on Form 8863, Part I,
column (c) . . . . . . . . . . . . . . . . . . . . . . . . .

Qualified Education Expenses Worksheet
for Part II, Column (c)
(Do a separate worksheet for each student)
1. Total qualified education expenses . . . . . . .

Part II
Hope Credit

2. Less adjustments:
a. Tax-free educational
assistance . . . . . . . . . . . .
b. Refunds of qualified
education expenses . . . . .
c. Other adjustments (see
Pub. 970, chapter 3) . . . . .

To claim the Hope credit in Part II, you must be claiming
this credit for at least one student attending an eligible
CAUTION educational institution in a Midwestern disaster area and
choose not to claim the American opportunity credit for any
student in 2009.
You may be able to take a credit of up to $1,800 ($3,600 if a
student in a Midwestern disaster area) for qualified education
expenses (defined earlier) paid for each student who qualifies.
The Hope credit equals 100% of the first $1,200 ($2,400 if a
student in a Midwestern disaster area) and 50% of the next
$1,200 ($2,400 if a student in a Midwestern disaster area) of
qualified expenses paid for each eligible student. This credit is
not refundable. The amount of your credit for 2009 is gradually
reduced (phased out) if your MAGI is between $50,000 and
$60,000 ($100,000 and $120,000 if you file a joint return). You
cannot claim a credit if your MAGI is $60,000 or more
($120,000 or more if you file a joint return).
You can take the Hope credit for a student if all of the
following apply.
• As of the beginning of 2009, the student had not completed
the first 2 years of postsecondary education (generally, the
freshman and sophomore years of college), as determined by
the eligible educational institution. For this purpose, do not
include academic credit awarded solely because of the
student’s performance on proficiency examinations.
• The student was enrolled in 2009 in a program that leads to a
degree, certificate, or other recognized educational credential.

!

3. Total adjustments (add lines 2a – 2c) . . . . . .
4. Qualified education expenses. Subtract line 3
from line 1 and enter here. Also enter (but not
more than $2,400*) on Form 8863, Part II,
column (c) . . . . . . . . . . . . . . . . . . . . . . . . .
* Do not enter more than $4,800 for a student who attended an
eligible educational institution in a Midwestern disaster area.

Part III
Lifetime Learning Credit
The lifetime learning credit equals 20% of qualified expenses
paid, up to a maximum of $10,000 of qualified expenses per
return. Therefore, the maximum lifetime learning credit you can
claim on your return for the year is $2,000, regardless of the
number of students for whom you are claiming the credit. The
amount of your credit for 2009 is gradually reduced (phased
out) if your MAGI is between $50,000 and $60,000 ($100,000
and $120,000 if you file a joint return). You cannot claim a credit
if your MAGI is $60,000 or more ($120,000 or more if you file a
joint return).

-4-

Page 5 of 6

Instructions for Form 8863

15:17 - 17-DEC-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

For students in Midwestern disaster areas, the rate is
modified to 40% of qualified expenses paid, with a maximum
lifetime learning credit allowed on your return of $4,000. If you
are claiming a lifetime learning credit for both students in
Midwestern disaster areas and other students, the qualified
education expenses taken into account in Part III for other
students cannot exceed $10,000 reduced by the qualified
education expenses of students in the Midwestern disaster
areas.

!

CAUTION

You do not qualify for a refund if 1, 2, and 3 below apply to
you.
1. You were:
a. Under age 18 at the end of 2009, or
b. Age 18 at the end of 2009 and your earned income
(defined below) was less than one-half of your support
(defined below), or
c. A full-time student over age 18 and under age 24 at the
end of 2009 and your earned income (defined below) was
less than one-half of your support (defined below).
2. At least one of your parents was alive at the end of 2009.
3. You are not filing a joint return for 2009.

You cannot claim the lifetime learning credit for any
student for whom you are claiming the American
opportunity or the Hope credit in the same tax year.

Line 5
Complete columns (a) through (c) on line 5 for each student for
whom you are taking the lifetime learning credit.
More than three students. If you are taking the lifetime
learning credit for more than three students, enter “See
attached” next to line 5 and attach a statement with the required
information for each additional student. Include the amounts
from line 5, column (c), for all students in the total you enter on
line 6.
Column (c). For each student, enter the amount of qualified
expenses remaining after reduction by certain tax-free
educational assistance and refunds, as explained under
Qualified Education Expenses on page 2. The expenses must
have been paid for the student in 2009 for academic periods
beginning after 2008 but before April 1, 2010, as explained
under Prepaid Expenses on page 3. You can use the worksheet
below to figure the correct amount to enter in
column (c).

If you meet these conditions, check the box next to line 15,
skip line 16, and enter the amount from line 15 on line 17.
Earned income. Examples of earned income include wages,
salaries, tips, and other taxable employee pay; net earnings
from self-employment; and gross income received as a
statutory employee. Statutory employees include full-time life
insurance agents, certain agent or commission drivers and
traveling salespersons, and certain homeworkers.
Support. Your support includes all amounts spent to provide
you with food, lodging, clothing, education, medical and dental
care, recreation, transportation, and similar necessities. To
figure your support, count support provided by you, your
parents, and others. However, a scholarship received by you is
not considered support if you are a full-time student. See Pub.
501, Exemptions, Standard Deduction, and Filing Information,
for details.

Qualified Education Expenses Worksheet
for Part III, Column (c)
(Do a separate worksheet for each student)

Paperwork Reduction Act Notice. We ask for the information
on this form to carry out the Internal Revenue laws of the United
States. You are required to give us the information. We need it
to ensure that you are complying with these laws and to allow
us to figure and collect the right amount of tax.

1. Total qualified education expenses . . . . . . .
2. Less adjustments:
a. Tax-free educational
assistance . . . . . . . . . . . .
b. Refunds of qualified
education expenses . . . . .
c. Other adjustments (see
Pub. 970, chapter 4) . . . . .

You are not required to provide the information requested on
a form that is subject to the Paperwork Reduction Act unless
the form displays a valid OMB control number. Books or
records relating to a form or its instructions must be retained as
long as their contents may become material in the
administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
Internal Revenue Code section 6103.

3. Total adjustments (add lines 2a – 2c) . . . . . .
4. Qualified education expenses (subtract line 3
from line 1). Enter here and on Form 8863,
Part III, column (c) . . . . . . . . . . . . . . . . . . .

The average time and expenses required to complete and
file this form will vary depending on individual circumstances.
For the estimated averages, see the instructions for your
income tax return.

Part IV
Refundable American Opportunity Credit
Line 15

If you have suggestions for making this form simpler, we
would be happy to hear from you. See the instructions for your
income tax return.

If you were under age 24 at the end of 2009 and the conditions
listed below apply to you, you cannot claim any part of the
American opportunity credit as a refundable credit on your tax
return. Instead, your allowed credit, which is figured in Part V,
will be used to reduce your tax as a nonrefundable credit only.

-5-

Page 6 of 6

Instructions for Form 8863

15:17 - 17-DEC-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Table 2. Midwestern Disaster Areas Eligible For Special Rules
The special rules for students in Midwestern disaster areas apply to those attending an eligible educational institution located in
the following counties.
Applicable
Disaster Dates*

State

Affected Counties — Midwestern Disaster Areas

05/02/2008
through
05/12/2008

Arkansas

Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline,
and Van Buren.

06/01/2008
through
07/22/2008

Illinois

Adams, Calhoun, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper,
Jersey, Lake, Lawrence, Mercer, Rock Island, Whiteside, and Winnebago.

05/30/2008
through
06/27/2008

Indiana

Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton,
Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence,
Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush,
Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne.

05/25/2008
through
08/13/2008

Iowa

Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan,
Butler, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clayton, Clinton, Crawford, Dallas, Davis,
Decatur, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie,
Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Johnson,
Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Mitchell,
Monona, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott,
Story, Tama, Union, Van Buren, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek,
Worth, and Wright.

05/10/2008
through
05/11/2008

Missouri

Barry, Jasper, and Newton.

06/01/2008
through
08/13/2008

Missouri

Adair, Andrew, Callaway, Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Johnson, Lewis,
Lincoln, Linn, Livingston, Macon, Marion, Monroe, Nodaway, Pike, Putnam, Ralls, St. Charles, Stone,
Taney, Vernon, and Webster.

05/22/2008
through
06/24/2008

Nebraska

Buffalo, Butler, Colfax, Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster,
Platte, Richardson, Sarpy, and Saunders.

06/05/2008
through
07/25/2008

Wisconsin

Adams, Calumet, Crawford, Columbia, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa,
Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee, Racine,
Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha, and Winnebago.

* For more details, go to www.fema.gov.

-6-