IRS From 8917

Paying for college, university, or vocational school can put pressure on a household budget. Tuition, required fees, books, and other education expenses can add up quickly. Understanding which education-related tax benefits apply can help families make informed decisions when preparing their federal income tax returns.

IRS Form 8917, Tuition and Fees Deduction, is now a historical tax form. It was used to calculate an above-the-line deduction for certain qualified education expenses, but the deduction was not extended beyond 2020. The IRS identifies Form 8917 as historical and provides older versions for taxpayers reviewing prior-year returns. <Cite refs={[“turn219354search0″,”turn219354search23”]}/>

For students, parents, and families in Grand Rapids, Kentwood, Wyoming, and throughout West Michigan, it is important to understand what Form 8917 did, why it is no longer used for current-year expenses, and which education tax benefits may be relevant today.

What Was IRS Form 8917?

Form 8917 was used to calculate the federal tuition and fees deduction. Unlike a tax credit, which generally reduces tax dollar for dollar, a deduction reduces the amount of income subject to tax.

For qualifying expenses paid in 2018, 2019, and 2020, the deduction was generally limited to either $4,000 or $2,000, depending on the taxpayer’s income and eligibility. The form included income-based limits and other restrictions. <Cite refs={[“turn219354search23″,”turn219354search20”]}/>

The deduction was available for certain qualified tuition and related expenses paid for the taxpayer, the taxpayer’s spouse, or an eligible dependent attending an eligible educational institution. Taxpayers had to meet the applicable rules for the tax year and could not claim the tuition and fees deduction for the same student and year when claiming an American Opportunity or Lifetime Learning Credit for that student’s expenses.

Because the deduction ended after 2020, taxpayers should not use Form 8917 to claim a deduction for tuition paid in 2021 or later.

Why Is Form 8917 Considered Historical?

Congress extended the tuition and fees deduction through the 2020 tax year, but it was not extended for later years. The IRS consequently identifies the form as historical. <Cite refs={[“turn219354search0″,”turn219354search23”]}/>

This matters for taxpayers who are preparing a current return, catching up on overdue tax filings, or considering whether an earlier return was prepared correctly.

For example, a taxpayer reviewing a 2020 return may need to determine whether the tuition and fees deduction was claimed correctly. A taxpayer preparing a 2025 or 2026 return, however, should generally review the education tax benefits currently available rather than attempting to claim the expired Form 8917 deduction.

The rules and deadlines for amending prior-year returns can also affect whether a missed benefit can still be claimed.

Which Education Tax Benefits Should Taxpayers Review Instead?

Although Form 8917 is historical, education-related tax benefits remain important for eligible students and families.

1. American Opportunity Tax Credit

The American Opportunity Tax Credit (AOTC) may help eligible taxpayers with qualified education expenses during the first four years of higher education.

The credit can be worth up to $2,500 per eligible student per year, subject to income limits and other eligibility requirements. Up to 40% of the credit may be refundable for eligible taxpayers, subject to the applicable rules.

Qualifying expenses generally include tuition, required fees, and certain course materials. Room and board generally do not qualify.

2. Lifetime Learning Credit

The Lifetime Learning Credit may help eligible taxpayers pay for undergraduate, graduate, professional, or qualifying job-skills education.

The credit can be worth up to $2,000 per tax return, calculated as 20% of up to $10,000 in qualifying expenses. Income limits and other eligibility rules apply.

Unlike the AOTC, the Lifetime Learning Credit is not limited to the first four years of postsecondary education.

3. Form 8863

IRS Form 8863, Education Credits, is used to calculate the American Opportunity Tax Credit and Lifetime Learning Credit.

Taxpayers should review Form 8863 and its instructions for the tax year being filed to determine whether either credit is available. A taxpayer cannot claim both education credits for the same student in the same year, and qualified expenses must be allocated according to the applicable rules.

The official IRS resources for education credits can help taxpayers understand eligibility, income limitations, and qualified expenses.

How to Organize Education Tax Records

Whether you are reviewing an older return or preparing a current federal income tax return, keeping education records organized can make tax preparation easier.

Step 1: Collect Form 1098-T. Colleges and other eligible educational institutions generally provide Form 1098-T, Tuition Statement, to report relevant tuition and scholarship information. However, receiving the form does not automatically mean the student or taxpayer qualifies for a credit.

Step 2: Keep receipts for qualified expenses. Save tuition statements, required fee receipts, and records of eligible books and course materials.

Step 3: Review scholarships and grants. Scholarships and grants may affect the amount of expenses available for an education credit. Their treatment depends on the circumstances and applicable tax rules.

Step 4: Determine who can claim the student. Whether a parent, student, or another taxpayer may claim an education benefit depends on dependency rules, who paid the expenses, and the requirements for the specific credit.

Step 5: Review income limits and other restrictions. Education credits have eligibility requirements that may depend on modified adjusted gross income, filing status, enrollment, and prior use of the credit.

Step 6: Use the correct tax-year forms. Do not use Form 8917 for tuition paid after 2020. Review the current Form 8863 instructions and other IRS education resources for the tax year you are filing.

Common Education Tax Filing Mistakes

Families should watch for these common errors:

• Attempting to claim the expired tuition and fees deduction for a current tax year.
• Assuming every college expense qualifies for an education credit.
• Overlooking scholarship and grant adjustments.
• Claiming the same education expenses more than once.
• Failing to check income limits or student eligibility.
• Assuming Form 1098-T alone establishes eligibility.
• Missing an opportunity to review a prior-year return for a potentially allowable benefit.

Careful review can help eligible families claim the tax benefits available under the rules for their specific tax year.

How AIM Financial Can Help With Education Tax Benefits

Education tax rules can be confusing, especially when families are comparing older deductions with current credits. The correct treatment depends on the year the expenses were paid, the student’s circumstances, the taxpayer’s income, and other eligibility requirements.

AIM Financial helps individuals and families with federal income tax preparation in Grand Rapids, Kentwood, Wyoming, and throughout West Michigan. If you are paying college expenses, helping a dependent attend school, or reviewing an earlier tax return, contact AIM Financial to discuss your tax preparation needs.

Our goal is to help taxpayers understand the forms involved, organize the necessary records, and review which tax benefits may apply.

For official guidance, visit the IRS pages for Form 8917 and Form 8863.

This article is for general educational purposes only. Education tax benefits depend on the tax year, qualified expenses, income, filing status, and other eligibility rules. Consult the applicable IRS instructions or a qualified tax professional for guidance on your circumstances.