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Form 8863 Education Credits (Hope and Lifetime Learning Credits) 2005. Summary: This is an example of Form 8863 (2005) as pertains to the description in the text. The line items completed are:

“Name(s) shown on return” field contains Jim Grant
“Your social security number” field contains 000-00-4321
Under “Part I: Hope Credit.”:
“1a. Student's name (as shown on page 1 of your tax return)”
“First name” field contains Jim
“Last name” field contains Grant
“1b. Student's social security number (as shown on page 1 of your tax return)” field contains 000-00-4321
“1c. Qualified expenses (but do not enter more than $2,000 for each student). See instructions” field contains 2,000
“1d. Enter the smaller of the amount in column (c) or $1,000” field contains 1,000
“1e. Add column (c) and column (d)” field contains 3,000
“1f. Enter one-half of the amount in column (e)” field contains 1,500
“2. Tentative Hope credit. Add the amounts on line 1, column (f). If you are claiming the lifetime learning credit, go to Part II; otherwise, go to Part III” field contains 1,500
Under “Part III: Allowable Education Credits”:
“7. Tentative education credits. Add lines 2 and 6” field contains 1,500
“8. Enter: $107,000 if married filing jointly; $53,000 if single, head of household, or qualifying widow(er)” field contains 53,000
“9. Enter the amount from Form 1040, line 38, or Form 1040A, line 22” field contains 34,000
“10. Subtract line 9 from line 8. If line 9 is equal to or more than line 8, stop; you cannot take any education credits” field contains 19,000
“11. Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er)” field contains 10,000
“13. Multiply line 7 by line 12” field contains 1,500
“14. Enter the amount from Form 1040, line 46, or Form 1040A, line 28” field contains 3,404
“15. Enter the total, if any, of your credits from Form 1040, lines 47 through 49, or Form 1040A, lines 29 and 30” field contains 0
“16. Enter the amount from Form 6251, line 31” field contains 0
“17. Add lines 15 and 16” field contains 0
“18. Subtract line 17 from line 14. If zero or less, stop; you cannot take any education credits” field contains 3,404
“19. Education credits. Enter the smaller of line 13 or line 18 here and on Form 1040, lines 49, or Form 1040A, line 31” field contains 1,500