Question
Anthony (27) and Nicole (26) are married and filing a joint return. Both Anthony and Nicole were full-time students all year at State College, located
Anthony (27) and Nicole (26) are married and filing a joint return. Both Anthony and Nicole were full-time students all year at State College, located at 11100 College Boulevard, Your City, Your State. During the year, Anthony paid $5,000 in tuition and fees, substantiated with Form 1098-T. Nicole paid $3,800 in tuition and fees, also substantiated with Form 1098-T. Both Anthony and Nicole have part-time jobs outside of school. They did not receive any scholarships during the year. Their adjusted gross income is $47,000. Their total tax on line 12a of their federal Form 1040 is $2,327. They had no additional taxes. Both Anthony and Nicole meet all the requirements to qualify for the American Opportunity Tax Credit.
I need the forms completed for this scenario. Complete Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits) for Anthony and Nicole. You should also complete the Credit Limit Worksheet.
2019 FORM 8863 CREDIT LIMIT WORKSHEET - LINES 18 and 19 Keep for Your Records NONREFUNDABLE CREDIT WORKSHEET 1. Enter the amount from Form 8863, line 18 1. 2. Enter the amount from Form 8863, line 9 2 3. Add lines 1 and 2. 3 4. Enter the amount from: Form 1040 or 1040-SR, line 126 5. Enter the amount from: Schedule 3 (Form 1040 or 1040-SA), lines 1 and 2; and the amount from Schedule Rline 22 6. Subtract line 5 from line 4 5. 6. 7. Enter the smaller of line 3 or line 6 here and on Form 8863, line 19 7. 2019 FORM 8863 CREDIT LIMIT WORKSHEET - LINES 18 and 19 Keep for Your Records NONREFUNDABLE CREDIT WORKSHEET 1. Enter the amount from Form 8863, line 18 1. 2. Enter the amount from Form 8863, line 9 2 3. Add lines 1 and 2. 3 4. Enter the amount from: Form 1040 or 1040-SR, line 126 5. Enter the amount from: Schedule 3 (Form 1040 or 1040-SA), lines 1 and 2; and the amount from Schedule Rline 22 6. Subtract line 5 from line 4 5. 6. 7. Enter the smaller of line 3 or line 6 here and on Form 8863, line 19 7
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