To claim the American Opportunity Credit, follow these steps:
Access the Federal Information Section:
From the left-hand side menu, select Federal Information.
Navigate to Credits and then choose Form 8863.
Adding Educational Expenses
Scroll to Part III:
Before completing Parts I and II, scroll down to Part III on Form 8863.
Click the Add button to access Part III.
Add the Student Name:
Select the student’s name from the dropdown menu on Line 20.
Reminder: The student’s name must be listed under the taxpayer’s information to appear in the dropdown menu.
Answer the questions to ensure the requirements are met.
Report Education Expenses:
Enter the education expenses on Line 27.This is the most critical part of the Form 1098-T.
Important Notes
The maximum amount for the American Opportunity Credit is $4,000, as per the IRS.