I just need help on the 2 blanks at the bottom. Please show me how you got your answer
Form 8863 a. Judy Estudiante graduates from high school in June 2018. In the fall, she enrolls for twelve units in Southwest University and receives the following Form 1098-T. I CORRECTED OMB No. 1545-1574 FILER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number Southwest University 1234 Cleveland Ave. El Paso, TX 79925 1 Payments received for qualified tuition and related Tuition 2018 expenses Statement $ 5,900.00 2 Form 1098-T STUDENT'S TIN FILER'S employer identification no. 3 If this box is checked, your educational institution changed its reporting method for 2018 Copy B 12-7652311 For Student 434-11-7812 STUDENT'S name 5 Scholarships or grants 4 Adjustments made for a prior year This is important tax information and is being furnished to the IRS. This form must be used STUDENT'S name 5 Scholarships or grants 4 Adjustments made for a prior year Judy Estudiante $ This is important tax information and is being furnished to the IRS. This form must be used to complete Form 8863 to claim education credits. Give it to the tax preparer or use it to prepare the tax return. Street address (including apt. no.) 12 Fannin Street 6 Adjustments to scholarships or grants for a prior year 7 Checked if the amount in box 1 includes amounts for an academic period beginning January-March 2019 - City or town, state or province, country, and ZIP or foreign postal code Van Horn, TX 79855 $ Service Provider/Acct. No. (see instr.) 8 Check if at least half-time student 9 Checked if a 10 Ins. contract reimb./ graduate student refund $ Form 1098-T (keep for your records) www.irs.gov/Form 1098T Department of the Treasury - Internal Revenue Service Judy's parents, Santiago and Sophia Estudiante, pay her tuition and fees, have AGI of $170,000, have pre-credit tax liability of over $20,000, are claiming no other tax credits, and claim Judy as a dependent. Judy has never been arrested or convicted of any crimes. Complete Form 8863 to determine what is the refundable and nonrefundable American Opportunity tax credit Judy's parents can claim for Judy if they file a joint return. If an amount is zero, enter "0". Enter all amounts as positive numbers. OMB No. 1545-0074 Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits) 2018 Department of the Treasury Internal Revenue Service (99) Attach to Form 1040. Go to www.irs.gov/Form8863 for instructions and the latest information. Attachment Sequence No. 50 Your social security number Name(s) shown on return Santiago and Sophia Estudiante A Complete a separate Part III on page 2 for each student for whom you're claiming either credit before you complete Parts I and II. CAUTION Part I Refundable American Opportunity Credit After completing Part III for each student, enter the total of all amounts from all Parts III, line 30 1 2,500 2 Enter: $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er) 2 180,000 3 3 170,000 4 Enter the amount from Form 1040, line 7. If you're filing Form 2555, 2555-EZ, or 4563, or you're excluding income from Puerto Rico, see Pub. 970 for the amount to enter Subtract line 3 from line 2. If zero or less, stop; you can't take any education credit Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er) If line 4 is: 4 10,000 5 5 20,000 6 6 0.500 Equal to or more than line 5, enter 1.000 on line 6 Less than line 5, divide line 4 by line 5. Enter the result as a decimal (rounded to at least } ... three places) 7 Multiply line 1 by line 6. Caution: If you were under age 24 at the end of the year and meet the conditions described in the instructions, you can't take the refundable American opportunity credit; skip line 8, enter the amount from line 7 on line 9, and check this box ....O 8 Refundable American opportunity credit. Multiply line 7 by 40% (0.40). Enter the amount here and on Form 1040, line 17c. Then go to line 9 below: 7 1,250 8 500 Part II Nonrefundable Education Credits 9 Subtract line 8 from line 7. Enter here and on line 2 of the Credit Limit Worksheet (see instructions) 9 750 10 After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter -- on line 18, and go to line 19 10 0 10 After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter -- on line 18, and go to line 19 10 0 11 Enter the smaller of line 10 or $10,000 11 12 Multiply line 11 by 20% (0.20) 12 13 14 13 Enter: $134,000 if married filing jointly; $67,000 if single, head of household, or qualifying widow(er) 14 Enter the amount from Form 1040, line 7. If you're filing Form 2555, 2555-Ez, or 4563, or you're excluding income from Puerto Rico, see Pub. 970 for the amount to enter 15 Subtract line 14 from line 13. If zero or less, skip lines 16 and 17, enter -0- on line 18, and go to on line 19 16 Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er) 17 If line 15 is: 15 16 Equal to or more than line 16, enter 1.000 on line 17 and go to line 18 Less than line 16, divide line 15 by line 16. Enter the result as a decimal (rounded to at least three places) 17 18 Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet (see instructions) 18 19 Nonrefundable education credit. Enter the amount from line 7 of the Credit Limit Worksheet (see instructions) here and on Schedule 3 (Form 1040), line 50. 19 750 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 25379M Form 8863 (2018) A You can't take the American opportunity credit and the lifetime learning credit for the same student in the same year. If you complete lines 27 through 30 for this student, don't complete line 31. CAUTION American Opportunity Credit 27 Adjusted qualified education expenses (see instructions). Don't enter more than $4,000 27 4,000 28 Subtract $2,000 from line 27. If zero or less, enter-O- 28 2,000 29 500 30 2,500 29 Multiply line 28 by 25% (0.25) 30 If line 28 is zero, enter the amount from line 27. Otherwise, add $2,000 to the amount on line 29 and enter the result. Skip line 31. Include the total of all amounts from all Parts III, line 30, on Part I, line 1. Lifetime Learning Credit 31 Adjusted qualified education expenses (see instructions). Include the total of all amounts from all Parts III, line 31, on Part II, line 10 31 0 Form 8863 (2018) Credit Limit Worksheet Complete this worksheet to figure the amount to enter on line 19. 1. Enter the amount from Form 8863, line 18 1. 0 2. Enter the amount from Form 8863, line 9 2. 750 3. Add lines 1 and 2 .... 3. 750 4. Enter the amount from: Form 1040, line 11 .. 4. JL. RE. 5. Enter the total of your credits from: Schedule 3 (Form 1040), lines 48 and 49, and Schedule R, line 22 5 0 6. Subtract line 5 from line 4..... 6. 7. Enter the smaller of line 3 or line 6 here and on Form 8863, line 19. 7. 750 Form 8863 a. Judy Estudiante graduates from high school in June 2018. In the fall, she enrolls for twelve units in Southwest University and receives the following Form 1098-T. I CORRECTED OMB No. 1545-1574 FILER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number Southwest University 1234 Cleveland Ave. El Paso, TX 79925 1 Payments received for qualified tuition and related Tuition 2018 expenses Statement $ 5,900.00 2 Form 1098-T STUDENT'S TIN FILER'S employer identification no. 3 If this box is checked, your educational institution changed its reporting method for 2018 Copy B 12-7652311 For Student 434-11-7812 STUDENT'S name 5 Scholarships or grants 4 Adjustments made for a prior year This is important tax information and is being furnished to the IRS. This form must be used STUDENT'S name 5 Scholarships or grants 4 Adjustments made for a prior year Judy Estudiante $ This is important tax information and is being furnished to the IRS. This form must be used to complete Form 8863 to claim education credits. Give it to the tax preparer or use it to prepare the tax return. Street address (including apt. no.) 12 Fannin Street 6 Adjustments to scholarships or grants for a prior year 7 Checked if the amount in box 1 includes amounts for an academic period beginning January-March 2019 - City or town, state or province, country, and ZIP or foreign postal code Van Horn, TX 79855 $ Service Provider/Acct. No. (see instr.) 8 Check if at least half-time student 9 Checked if a 10 Ins. contract reimb./ graduate student refund $ Form 1098-T (keep for your records) www.irs.gov/Form 1098T Department of the Treasury - Internal Revenue Service Judy's parents, Santiago and Sophia Estudiante, pay her tuition and fees, have AGI of $170,000, have pre-credit tax liability of over $20,000, are claiming no other tax credits, and claim Judy as a dependent. Judy has never been arrested or convicted of any crimes. Complete Form 8863 to determine what is the refundable and nonrefundable American Opportunity tax credit Judy's parents can claim for Judy if they file a joint return. If an amount is zero, enter "0". Enter all amounts as positive numbers. OMB No. 1545-0074 Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits) 2018 Department of the Treasury Internal Revenue Service (99) Attach to Form 1040. Go to www.irs.gov/Form8863 for instructions and the latest information. Attachment Sequence No. 50 Your social security number Name(s) shown on return Santiago and Sophia Estudiante A Complete a separate Part III on page 2 for each student for whom you're claiming either credit before you complete Parts I and II. CAUTION Part I Refundable American Opportunity Credit After completing Part III for each student, enter the total of all amounts from all Parts III, line 30 1 2,500 2 Enter: $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er) 2 180,000 3 3 170,000 4 Enter the amount from Form 1040, line 7. If you're filing Form 2555, 2555-EZ, or 4563, or you're excluding income from Puerto Rico, see Pub. 970 for the amount to enter Subtract line 3 from line 2. If zero or less, stop; you can't take any education credit Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er) If line 4 is: 4 10,000 5 5 20,000 6 6 0.500 Equal to or more than line 5, enter 1.000 on line 6 Less than line 5, divide line 4 by line 5. Enter the result as a decimal (rounded to at least } ... three places) 7 Multiply line 1 by line 6. Caution: If you were under age 24 at the end of the year and meet the conditions described in the instructions, you can't take the refundable American opportunity credit; skip line 8, enter the amount from line 7 on line 9, and check this box ....O 8 Refundable American opportunity credit. Multiply line 7 by 40% (0.40). Enter the amount here and on Form 1040, line 17c. Then go to line 9 below: 7 1,250 8 500 Part II Nonrefundable Education Credits 9 Subtract line 8 from line 7. Enter here and on line 2 of the Credit Limit Worksheet (see instructions) 9 750 10 After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter -- on line 18, and go to line 19 10 0 10 After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter -- on line 18, and go to line 19 10 0 11 Enter the smaller of line 10 or $10,000 11 12 Multiply line 11 by 20% (0.20) 12 13 14 13 Enter: $134,000 if married filing jointly; $67,000 if single, head of household, or qualifying widow(er) 14 Enter the amount from Form 1040, line 7. If you're filing Form 2555, 2555-Ez, or 4563, or you're excluding income from Puerto Rico, see Pub. 970 for the amount to enter 15 Subtract line 14 from line 13. If zero or less, skip lines 16 and 17, enter -0- on line 18, and go to on line 19 16 Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er) 17 If line 15 is: 15 16 Equal to or more than line 16, enter 1.000 on line 17 and go to line 18 Less than line 16, divide line 15 by line 16. Enter the result as a decimal (rounded to at least three places) 17 18 Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet (see instructions) 18 19 Nonrefundable education credit. Enter the amount from line 7 of the Credit Limit Worksheet (see instructions) here and on Schedule 3 (Form 1040), line 50. 19 750 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 25379M Form 8863 (2018) A You can't take the American opportunity credit and the lifetime learning credit for the same student in the same year. If you complete lines 27 through 30 for this student, don't complete line 31. CAUTION American Opportunity Credit 27 Adjusted qualified education expenses (see instructions). Don't enter more than $4,000 27 4,000 28 Subtract $2,000 from line 27. If zero or less, enter-O- 28 2,000 29 500 30 2,500 29 Multiply line 28 by 25% (0.25) 30 If line 28 is zero, enter the amount from line 27. Otherwise, add $2,000 to the amount on line 29 and enter the result. Skip line 31. Include the total of all amounts from all Parts III, line 30, on Part I, line 1. Lifetime Learning Credit 31 Adjusted qualified education expenses (see instructions). Include the total of all amounts from all Parts III, line 31, on Part II, line 10 31 0 Form 8863 (2018) Credit Limit Worksheet Complete this worksheet to figure the amount to enter on line 19. 1. Enter the amount from Form 8863, line 18 1. 0 2. Enter the amount from Form 8863, line 9 2. 750 3. Add lines 1 and 2 .... 3. 750 4. Enter the amount from: Form 1040, line 11 .. 4. JL. RE. 5. Enter the total of your credits from: Schedule 3 (Form 1040), lines 48 and 49, and Schedule R, line 22 5 0 6. Subtract line 5 from line 4..... 6. 7. Enter the smaller of line 3 or line 6 here and on Form 8863, line 19. 7. 750
