Credit Limit Worksheet for Form 8863 at a glance
What it is: The Credit Limit Worksheet is completed to figure the amount to enter on line 19 of Form 8863.
A filled-in Credit Limit Worksheet for Form 8863 example: Jane Ann Sample completes the worksheet
How to fill out Credit Limit Worksheet for Form 8863, box by box
Credit Limit Worksheet, lines 1 and 2
On line 1, enter the amount from Form 8863, line 18.
On line 2, enter the amount from Form 8863, line 9.
Lines 3, 4, 5, and 6, the total of your credits from Schedule 3 (Form 1040)
On line 3, add lines 1 and 2.
On line 4, enter the amount from Form 1040 or 1040-SR, line 18.
On line 5, enter the total of your credits from Schedule 3 (Form 1040), lines 1, 2, 6d, and 6l.
On line 6, subtract line 5 from line 4.
Credit Limit Worksheet, line 7
Enter the smaller of line 3 or line 6 on line 7 and on Form 8863, line 19. Enter the amount from line 7 of the Credit Limit Worksheet on Schedule 3 (Form 1040), line 3.
Line 14, your MAGI
On line 14, generally, your MAGI is the amount on your Form 1040 or 1040-SR, line 11b. However, if you're filing Form 2555, or Form 4563, or are excluding income from Puerto Rico, you must include on line 14 the amount of income you excluded. For details, see Pub. 970.
Line 22, the educational institutions
On line 22, if the student attended only one educational institution, enter the information about the institution and answer the questions about Form 1098-T in column (a). If the student attended a second educational institution, enter the information and answers for the second educational institution in column (b). If the student attended more than two educational institutions, attach an additional page 2 completed only through line 22.
If the educational institution has a foreign address, enter the foreign address and don't abbreviate the country name. Follow the country's practice for entering the postal code and name of the province, county, or state.
The educational institution's EIN must be provided on line 22(4) if the American opportunity credit is claimed for this student.
Line 23, the American opportunity credit claimed for this student
On line 23, if the American opportunity credit has been claimed for this student for any 4 tax years before 2025, the American opportunity credit cannot be claimed for this student for 2025. Check "Yes" and go to line 31.
If the American opportunity credit has been claimed for this student for 3 or fewer prior tax years, check "No."
Line 24, enrolled at least half-time
On line 24, check "Yes" if the student enrolled at least half-time for at least one academic period that began or is treated as having begun in 2025 at an eligible educational institution in a program leading towards a postsecondary degree, certificate, or other recognized postsecondary educational credential. Otherwise, check "No."
If any qualified education expenses for the student were paid in 2025 for an academic period beginning in the first 3 months of 2026, treat that academic period as if it began in 2025.
If you checked "Yes," go to line 25. If you checked "No," the student isn't eligible for the American opportunity credit; skip lines 25 through 30 and go to line 31.
Line 25, the first 4 years of postsecondary education
On line 25, check "Yes" if the student completed the first 4 years of postsecondary education before 2025. Otherwise, check "No."
A student has completed the first 4 years of postsecondary education before 2025 if the educational institution has awarded the student 4 years of academic credit at that institution for postsecondary coursework the student completed before 2025. Disregard any academic credit awarded solely on the basis of the student's performance on proficiency examinations.
If you checked "No," go to line 26. If you checked "Yes," the student isn't eligible for the American opportunity credit; skip lines 26 through 30 and go to line 31.
Line 26, convicted of a federal or state felony
On line 26, check "Yes" if the student was convicted, before the end of 2025, of a federal or state felony for possession or distribution of a controlled substance.
If you checked "No," complete lines 27 through 30 for this student. If you checked "Yes," the student isn't eligible for the American opportunity credit; skip lines 27 through 30 and go to line 31.
Before you go
You must complete Part III for each student for whom you're claiming either the American opportunity credit or lifetime learning credit before you complete either Part I or Part II. Use additional copies of page 2 as needed for each student.
Sources
[1] Instructions for Form 8863 (2025), Credit Limit Worksheet, Internal Revenue Service (the Official source link on this page).
