Education Tax Credit books

AOTC Worksheet

Complete the boxes with bold borders to determine the amuount of qualified expenses for the education credit, and the amount that must be included in income to claim that credit. Please advise of any errors in calculation. Use at your own risk.

A PDF version of this Worksheet can be downloaded from the AOTC Toolkit.

Qualified Expenses Enter the total amount of your qualified educational expenses.
Total Scholarships Enter the total amount of all scholarships and grants received for the tax year.
Taxable Scholarships Enter the amount of scholarships required to be used for other than qualified expenses.
  Subtract line 3 from line 2.
Excess Scholarships If line 4 is greater than line 1, subtract line 1 from line 4.  
Potential Tax-free Scholarships Subtract line 5 from line 4  
Exclusive Scholarships Enter the amount of the scholarships that you are required to use for qualified educational expenses.
Elective Scholarships If line 6 is greater than line 7, Subtract line 7 from line 6.  
Excess Expenses Paid by Taxpayer If line 1 is greater than line 6, Subtract line 6 from line 1  
Qualified Expenses for Tax Credit Add line 8 and line 9 (maximum 4000). Enter this amount on line 27 of Form 8863.  
Elective Scholarships Includable in Income If line 9 is less than line 10, subtract line 9 from line 10. Otherwise, enter 0.  
Total Scholarships Included in Income Add line 3, line 5 and line 11. This is the amount of taxable scholarships. Enter SCH and this amount on the dotted line to the left of line 7. Include this amount in the total on line 7 of Form 1040.  

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