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Printable Form Steps to Complete IRS 8863 Online San Diego California: What You Should Know
Tax Tip: Learn More about The American Opportunity Credit. The American opportunity credit is a tax credit that reduces the tax for qualifying educational expenses. Qualified expenses include tuition and fees, books, supplies, and equipment used for an eligible educational program. A separate credit is created for each education program. Qualified education expenses include (as of the 2025 tax year) tuition, fees, textbooks, supplies, and equipment for a program of study leading to a baccalaureate, masters, professional, vocational, or associate degree, a certificate, or diploma. If the education is to be completed on a part-time or summer basis, then the student may deduct the amount paid instead of the cost of attendance. In addition, for students who are pursuing a master or doctoral degree, those costs may not include tuition, fees, or books, supplies. If, however, the program is to be completed on a full-time basis (60 semester hours or more) then the student will be considered to be pursuing a postsecondary educational program even if the program is not intended for completion during the student's 4-year college career. Education programs do not include an employer paid education deduction unless the institution actually receives money for these education expenses. In addition, the education costs do not include amounts paid for attendance at college or university-sponsored programs and religious institutions. Qualified education expenses may not include amounts paid for tuition only, but may include the cost for all coursework required for a degree as well as for general enrollment. The American opportunity credit is available to individuals of all tax filing statuses and does not phase out at higher income levels. Learn more about The American opportunity credit. The American opportunity credit is a tax credit that reduces tax for qualifying educational expenses. Qualified expenses include tuition and fees, books, supplies, and equipment used for an eligible educational program. A separate credit is created for each education program. Qualified education expenses include (as of the 2025 tax year) tuition, fees, books, supplies, and equipment for a program of study leading to a baccalaureate, masters, professional, vocational, or associate degree, a certificate, or diploma. If the education is to be completed on a part-time or summer basis, then the student may deduct the amount paid instead of the cost of attendance.
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