Form 8863 K PDF Details

Do you know about the new Form 8863K? If not, you're not alone. The IRS only began accepting the form for 2017 tax returns in late March of this year. Despite its recent emergence, the form is crucial for anyone claiming education credits on their return. So what exactly is Form 8863K, and why do you need it? In this post, we'll answer those questions and more. By the end of reading, you should have a clear understanding of this important new document and why it matters to you. Stay tuned! We'll also be releasing a follow-up post with more detail on how to complete Form 8863K.

QuestionAnswer
Form NameForm 8863 K
Form Length3 pages
Fillable?No
Fillable fields0
Avg. time to fill out45 sec
Other namesky form 8863 k, 2009, KENTUCKY, IVAllowable

Form Preview Example

8863-K

*1100030026*

2011

42A740-S24

 

 

 

 

 

 

 

 

KENTUCKY

Department of Revenue

 

 

 

Attach to Form 740 or Form 740-NP.

EDUCATION TUITION TAX CREDIT

 

 

 

 

 

 

 

Enter name(s) as shown on Form 740 or Form 740-NP, page 1.

 

 

 

Your Social Security Number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

If you have a credit carry forward from previous years, see Page 2, Part V.

Caution: Requirements for the 2011 Kentucky Education Tuition Tax Credit are different from the federal education requirements. Please review instructions to determine if you meet the qualifications for this credit.

PART I—Qualifications

Yes No

Are all expenses claimed on this form from an eligible educational

institution located within the Commonwealth of Kentucky (Kentucky institution)? ...............................

Are all of the expenses claimed on this form for undergraduate studies? ..............................................

Is your Kentucky filing status single; married filing separately on a combined return;

or married filing a joint return? ...................................................................................................................

If you answered “No” to any of these questions above, STOP, you do not qualify for this credit.

If you answered “Yes” to all questions above, go to Part II.

PART II—Hope Credit (List only expenses from Kentucky institutions.) See Instructions

1.

(c) Qualified Expenses

(d) Enter the smaller

 

(f) Enter one-half

 

 

(see instructions). Do not

(e) Add column (c)

 

 

of the amount in

of the amount in

 

(a) Student Name

enter more than $2,400

and column (d)

 

column (c) or $1,200

column (e)

 

SSN

for each student.

 

 

 

 

 

 

 

 

 

 

 

 

 

$

$

$

$

 

 

 

 

 

 

 

 

 

 

 

 

 

(b) Institution Name and Address

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(c) Qualified Expenses

(d) Enter the smaller

 

(f) Enter one-half

 

(see instructions). Do not

(e) Add column (c)

 

of the amount in

of the amount in

(a) Student Name

enter more than $2,400

and column (d)

column (c) or $1,200

column (e)

SSN

for each student.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

$

$

$

(b)Institution Name and Address

2.Tentative Hope Credit. Add the amounts on line 1, column (f). If you are taking the Lifetime

Learning Credit for another student, go to Part III; otherwise, go to line 7

2

 

 

 

 

 

 

 

 

 

PART III—Lifetime Learning Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

3.

 

 

 

 

 

 

(d) Qualified Expenses

(a) Student Name

 

 

(b) Student SSN

 

(c) Name and Address of Kentucky Institution

 

(See instructions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.

Add the amounts on line 3, column (d) and enter total here

4

5.

Enter the smaller of line 4 or $10,000

5

6.

Tentative Lifetime Learning Credit. Multiply line 5 by 20% (.20), enter here

6

7.

Tentative Kentucky Education Credits. Add lines 2 and 6, enter here and on Page 2, line 8

7

Note: If you have an unused credit from prior year(s), complete Page 2, Part V to determine your carryforward amount. You must have completed Form 8863-K in prior years to claim any allowable unused credit carryforward.

FORM 8863-K (2011)

*1100030045*

Page 2

42A740-S24

 

 

 

 

PART IV—Allowable Education Credits

 

 

8. Enter tentative Kentucky Education Credits from page 1, line 7

8

9.Enter: $122,000 if married filing jointly or married filing separately on a combined return;

 

$61,000 if single

 

9

 

 

 

 

 

10.

Enter the amount from Form 1040, line 37, or Form 1040A, line 21

10

 

 

 

 

 

11. Subtract line 10 from line 9. If zero or less, STOP; you cannot take

 

 

 

 

 

 

 

 

any education credits for Kentucky

11

 

 

 

 

 

12.

Enter $20,000 if married filing jointly or married filing separately

 

 

 

 

 

 

 

 

on a combined return; $10,000 if single

12

 

 

 

 

 

13.

If line 11 is equal to or more than line 12, enter the amount from line 8

 

 

 

 

 

 

 

 

on line 14 and go to line 15. If line 11 is less than line 12, divide line 11

 

 

 

 

 

 

X .

 

by line 12. Enter the result as a decimal (rounded to at least three places)

13

 

14.

Multiply line 8 by the decimal amount on line 13 and enter here

 

 

14

 

 

15.

Multiply the amount on line 14 by 25% (.25) and enter total here

 

 

15

 

 

16.

Enter tentative tax from Form 740 or Form 740-NP, page 1, line 22

 

 

16

 

 

17.

Enter amount from Part V, line 37. If Part V, line 37 is blank, enter -0-

 

 

17

 

 

 

 

 

 

18.

Subtract line 17 from line 16

 

 

18

 

 

 

 

 

 

19.

Enter the smaller of line 18 or line 15

 

 

19

 

 

 

 

 

 

20.

Add lines 17 and 19. Enter here and on Form 740 or Form 740-NP, line 23.

 

 

 

 

 

This is your allowable 2011 education credit

 

 

20

 

 

21.

If line 18 is smaller than line 15, subtract line 18 from line 15. This is the amount

 

 

 

 

 

of unused credit carryforward from 2011 to 2012. Enter here and on the 2011 Carryforward

 

 

 

 

 

Worksheet, Line E, provided below

 

 

21

 

 

 

 

 

 

 

 

 

 

PART V—Credit Carryforward from Prior Years

 

 

 

 

 

 

 

22.

Enter tentative tax from Form 740 or Form 740-NP, page 1, line 22

 

 

22

 

 

23.

Enter your credit carryforward from 2006

 

 

23

 

 

24.

Enter your credit carryforward from 2007

 

 

24

 

 

25.

Enter your credit carryforward from 2008

 

 

25

 

 

26.

Enter your credit carryforward from 2009

 

 

26

 

 

27.

Enter your credit carryforward from 2010

 

 

27

 

 

28.

Add lines 23 through 27 and enter total here

 

 

28

 

 

29.

Subtract line 23 from line 22. If zero or less, enter -0-

 

 

29

 

 

30.

...Enter 2007 credit carryforward to 2012. Subtract line 29 from line 24. If zero or less, enter -0-

30

 

 

31.

Subtract line 24 from line 29. If zero or less, enter -0-

 

 

31

 

 

32.

...Enter 2008 credit carryforward to 2012. Subtract line 31 from line 25. If zero or less, enter -0-

32

 

 

33.

Subtract line 25 from line 31. If zero or less, enter -0-

 

 

33

 

 

 

 

 

 

34.

Enter 2009 credit carryforward to 2012. Subtract line 33 from line 26. If zero or less, enter -0-...

34

 

 

35.

Subtract line 26 from line 33. If zero or less, enter -0-

 

 

35

 

 

 

 

 

 

36.

Enter 2010 credit carryforward to 2012. Subtract line 35 from line 27. If zero or less, enter -0-....

36

 

 

 

 

37.

Enter the smaller of line 22 or line 28

 

 

37

 

 

 

2011 Carryforward Worksheet

A.

From Part V, Line 30, 2007 to 2012

_____________

B.

From Part V, Line 32, 2008 to 2012

_____________

C.

From Part V, Line 34, 2009 to 2012

_____________

D.

From Part V, Line 36, 2010 to 2012

_____________

E.

From Part IV, Line 21, 2011 to 2012

_____________

If you have a carryforward of credit, maintain a copy of this worksheet or Form 8863-K for your records. This information will be needed to prepare future returns.

Instructions for Form 8863-K

Purpose of Form—Use Form 8863-K to calculate and claim your education credits. The education credits are: the Hope Credit and the Lifetime Learning Credit. These credits are based on qualified education expenses paid to an eligible postsecond- ary educational institution located in Kentucky. If you elected to claim the education credit for federal purposes rather than the tuition and fees deduction, you must make that same elec- tion for Kentucky purposes.

Caution: Requirements for the 2011 Kentucky EducationTuition Tax Credit are different from the federal education require- ments due to Kentucky not adopting the American Recovery and Reinvestment Act of 2009.

Qualified Education Expenses—Generally, qualified educa- tion expenses are amounts paid in 2011 for tuition and fees required for the student’s enrollment or attendance at an eli- gible educational institution. It does not matter whether the expenses were paid in cash, by check, by credit card, or with borrowed funds.

Eligible Educational Institution located in Kentucky—An eli- gible educational institution is generally any accredited public, nonprofit, or 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. The institution must also be physically located in Kentucky to qualify.

Part I, Qualifications—All questions in Part I must be answered yes to be eligible for the Kentucky Education Tuition Tax Credit.

Part II, Hope Credit—You may be able to take a credit of up to 25% of $1,800 for qualified education expenses paid for each student who qualifies for the Hope Credit. The Hope Credit equals 100% of the first $1,200 and 50% of the next $1,200 of qualified expenses paid for each eligible student. For Ken- tucky, the credit is then limited to 25% for a maximum amount allowed of $450 for each student who qualified. You can take the Hope Credit for a student if all of the following apply.

•฀ As฀of฀the฀beginning฀of฀2011,฀the฀student฀had฀not฀complet- ed the first 2 years of postsecondary education (gener- ally, 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 ex- ams.

•฀ The฀student฀was฀enrolled฀in฀2011฀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 2011.

•฀ The฀ Hope฀ Credit฀ was฀ not฀ claimed฀ for฀ that฀ student’s฀ ex- penses in more than one prior tax year.

•฀ The฀ student฀ has฀ not฀ been฀ convicted฀ of฀ a฀ felony฀ for฀ pos- sessing or distributing a controlled substance.

Note: If a student does not meet all of the above qualifica- tions, you may be able to take the Lifetime Learning Credit for part or all of the student’s qualified education expenses.

Line 1, Columns A and B—Enter student’s name, Social Secu- rity number and the name and address of qualified Kentucky institution.

Line 1, Column C—Enter qualified expenses; do not enter more than $2,400 for each student.

Line 1, Column D—Enter the amount from Column C or $1,200, whichever is smaller.

Line 1, Column E—Add Column C and Column D.

Line 1, Column F—Enter one-half of the amount in Column E.

Line 2—Add all amounts in Column F for all students to com- pute your tentative Hope credit. If you have expenses for more than two students, attach a list to Form 8863-K and list the total for all students on Line 2. If you are taking the Lifetime Learn- ing Credit for another student, go to Part III; otherwise go to Part IV.

Part III—Lifetime Learning Credit—You may be able to take 25% of the Lifetime Learning Credit that equals 20% of quali- fied expenses paid, up to a maximum of $10,000 of qualified expenses per return. The maximum amount of Lifetime Learn- ing Credit you can claim on your tax return for the tax year is $2,000. For Kentucky, the Lifetime Learning Credit is then limited to 25% of the $2,000 for a maximum allowed of $500 per return.

Line 3, Column A–D—Enter student’s name, Social security number, name and address of qualified Kentucky institution and amount of qualified expenses.

Line 4—Add all amounts in Column D for all students.

Line 5—Enter the smaller of Line 4 or $10,000.

Line 6—Multiply Line 5 by 20%. Do not enter more than $2,000. This is your tentative Lifetime Learning Credit.

Line 7—Add Line 2 (tentative Hope Credit) and Line 6 (tenta- tive Lifetime Learning Credit) to get your tentative Kentucky Education Credits. Enter the amount on Line 7 and on page 2, Line 8.

Part IV—Allowable Education Credits—

Line 9 – Line 13—You cannot take any Kentucky Education Credits if your federal adjusted gross income (federal Form 1040, Line 37 or 1040A, Line 21) exceeds $122,000 if married, filing jointly or married, filing separately on a combined return ($61,000 if single). If you are filing a separate return, you do not qualify for this credit. If your income is greater than $100,000, you may only be entitled to a portion of the credits, if any. Pro- ceed to Line 14 if your income is less than $100,000.

Line 14—Enter the amount from Line 8 if your credit was not limited based on income. If the credit was limited based on income, multiply the amount on Line 8 by the decimal amount on Line 13.

Line 15—Multiply Line 14 by 25% (.25). This is your tentative Kentucky allowable credit.

Line 16—Enter the tentative tax from Form 740 or Form 740-NP, page 1, Line 22.

Line 17—Enter the amount from page 2, Part V, Line 37. This is the allowable credit carryforward from prior year(s). If there is no carryforward, enter zero.

Line 18—Subtract Line 17 from Line 16.

Line 19—Enter the smaller of Line 18 or Line 15.

Line 20—Add Lines 17 and 19. Enter here and on Form 740 or Form 740-NP, Line 23. This is your allowable 2011 education credit.

Line 21—If Line 18 is smaller than Line 15, subtract Line 18 from Line 15. This is the amount of unused credit carryforward from 2011 to 2012. Maintain records for following years.

Part V, Credit Carryforward from Prior Years—The Kentucky Education Tuition Tax credit can be carried forward for up to 5 years if unused during the preceding tax year(s). You must have completed Form 8863-K for any prior year in which you are claiming a credit carryforward.

How to Edit Form 8863 K Online for Free

Through the online PDF tool by FormsPal, you are able to fill out or edit postsecondary here. To retain our editor on the leading edge of convenience, we strive to put into action user-oriented capabilities and enhancements regularly. We are routinely pleased to receive suggestions - join us in revampimg PDF editing. If you are seeking to begin, here's what it requires:

Step 1: Click on the "Get Form" button above. It'll open up our editor so that you can start filling out your form.

Step 2: With this state-of-the-art PDF editor, you may do more than simply fill out blank fields. Express yourself and make your forms appear professional with custom textual content added in, or fine-tune the original input to excellence - all that comes with the capability to add stunning pictures and sign the file off.

This PDF form will need specific information; in order to guarantee accuracy and reliability, take the time to pay attention to the subsequent steps:

1. It's very important to complete the postsecondary correctly, so be mindful while filling out the areas comprising these blanks:

How one can fill in kentucky form 8863 k portion 1

2. Once your current task is complete, take the next step – fill out all of these fields - b Institution Name and Address, a Student Name, SSN, c Qualified Expenses, see instructions Do not enter more, for each student, d Enter the smaller, of the amount in, column c or, e Add column c, and column d, f Enter onehalf of the amount in, column e, b Institution Name and Address, and Tentative Hope Credit Add the with their corresponding information. Make sure to double check that everything has been entered correctly before continuing!

see instructions Do not enter more, a Student Name, and f Enter onehalf of the amount in of kentucky form 8863 k

3. This third part is generally hassle-free - fill in all the blanks in Add the amounts on line column d, and Note If you have an unused credit to conclude the current step.

Note If you have an unused credit, Note If you have an unused credit, and Add the amounts on line  column d in kentucky form 8863 k

4. The following part needs your involvement in the following parts: any education credits for Kentucky, on a combined return if single, PART IVAllowable Education Credits, This is your allowable education, and of unused credit carryforward from. Always type in all requested information to go forward.

Filling in part 4 of kentucky form 8863 k

Be really attentive when filling in PART IVAllowable Education Credits and any education credits for Kentucky, since this is where most users make errors.

5. To wrap up your form, the particular area requires some additional fields. Entering PART VCredit Carryforward from, Enter tentative tax from Form or, and Carryforward Worksheet should finalize the process and you're going to be done quickly!

Step no. 5 for filling out kentucky form 8863 k

Step 3: Prior to finalizing your document, make certain that all blanks were filled out the correct way. Once you’re satisfied with it, press “Done." Right after registering afree trial account here, you'll be able to download postsecondary or email it right off. The PDF form will also be readily available in your personal cabinet with your changes. At FormsPal.com, we endeavor to make certain that your information is maintained protected.