Updated October 18, 2026. Quick answer: Part II adds the leftover American opportunity credit from line 9 to the lifetime learning credit worked out on lines 10 to 18, then caps the total with the Credit Limit Worksheet. Line 19 is the nonrefundable education credit and goes to Schedule 3, line 3. The numbers come from Part III, line 31, from your Form 1040 and from the worksheet in the instructions.
IRS worksheets read line by line: Pub 970 Worksheet 1-1.
IRS worksheets read line by line: Form 8863 Credit Limit Worksheet.
Line 9: the leftover American opportunity credit
The caption reads “Subtract line 8 from line 7. Enter here and on line 2 of the Credit Limit Worksheet.”. The instructions say “Enter the amount from line 9 on the Credit Limit Worksheet, line 2, later.” If you checked the box on line 7, line 8 was skipped, so the whole line 7 amount arrives here. The steps before this are on the lines 1 to 8 page.
Lines 10 to 12: the lifetime learning credit amount
The caption for line 10 reads “After completing Part III for each student, enter the total of all amounts from all Parts III, line 31.” It adds “If zero, skip lines 11 through 17”. The instructions say “Enter the amount from Part III, line 31.” and “If you’re claiming the lifetime learning credit for more than one student, add the amounts from each student’s Part III, line 31, and enter the total for all those students on line 10.”
Line 11 reads “Enter the smaller of line 10 or $10,000”. Line 12 reads “Multiply line 11 by 20% (0.20)”. The student side is on the line 31 page of the Form 8863 walk-through.
Lines 13 to 17: the income phase-out
Line 13 reads “Enter $180,000 if married filing jointly; or $90,000 if single, head of household, or qualifying surviving spouse”. For line 14 the instructions say “Generally, your MAGI is the amount on your Form 1040 or 1040-SR, line 11b.” They add “you must include on line 14 the amount of income you excluded.” The Form 1040 figure is explained on the Form 1040 AGI page.
Line 15 reads “Subtract line 14 from line 13. If zero or less, skip lines 16 and 17”. Line 16 reads “Enter $20,000 if married filing jointly; or $10,000 if single, head of household, or qualifying surviving spouse”. Line 17 then gives two cases: “Equal to or more than line 16, enter 1.000 on line 17 and go to line 18; or” “Less than line 16, divide line 15 by line 16.”
Line 18: the credit before the limit
The caption reads “Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet.” The instructions say “Enter the amount from line 18 on the Credit Limit Worksheet, line 1, later.”
Line 19 and the Credit Limit Worksheet
The caption reads “Nonrefundable education credits. Enter the amount from line 7 of the Credit Limit Worksheet (see instructions) here and on Schedule 3 (Form 1040), line 3”. The instructions say “Enter the amount from line 7 of the Credit Limit Worksheet here and on Schedule 3 (Form 1040), line 3.” The worksheet is a table in the instructions, headed Credit Limit Worksheet, and it begins “Complete this worksheet to figure the amount to enter on line 19.” Its first two lines take in the amounts from Form 8863 line 18 and line 9, so read the rest of the worksheet there and follow its lines in order. It limits the credit by your tax, which is the reason the form is nonrefundable.
A form arithmetic illustration
A computed illustration, not an IRS example: suppose line 10 is $6,000. Line 11 is the smaller of $6,000 or $10,000, which is $6,000, and line 12 is computed as $6,000 times 0.20, or $1,200. If line 13 is $90,000 and line 14 is $85,000, line 15 is $5,000. With line 16 at $10,000, line 17 is $5,000 divided by $10,000, or 0.500, and line 18 is $1,200 times 0.500, or $600. The figures are invented to show how the lines connect.
Where the number comes from
Lines 9 and 18 carry over from earlier on this form, line 10 comes from Part III, and the income lines come from your Form 1040. The worksheet then draws on your tax and other credits listed on its own lines, printed in the instructions. The school statement behind the expenses is explained on the Form 1098-T page.
Where it goes next
Line 19 goes to Schedule 3, line 3, as the caption above says. That credit is explained on the Schedule 3 line 3 page. The Form 1040 side is on the Form 1040 lines 29 to 31 page. For the whole form, see Form 8863.
Edition and line numbers
This page reads the 2025 Form 8863 (Education Credits) and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are the files for the tax year 2025 return, filed in 2026. The form says “Attach to Form 1040 or 1040-SR.” Check the tax year printed on the form you are filling in and use the line numbers on that year’s form, because a different year’s form can number or word its lines differently.
Common mistakes
- Entering line 19 without using the worksheet. The caption says “Enter the amount from line 7 of the Credit Limit Worksheet (see instructions) here and on Schedule 3 (Form 1040), line 3”
- Adding the student total for the wrong credit. The instructions say “Enter the amount from Part III, line 31.”
- Forgetting excluded income on the income line. The instructions say “you must include on line 14 the amount of income you excluded.”
Related: Schedule 3 line 3, Form 1040 AGI, Form 1098-T, and Form 1040 lines 29 to 31.
Sources
- Instructions for Form 8863, Education Credits (2025): https://www.irs.gov/pub/irs-pdf/i8863.pdf
- Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits) (2025): https://www.irs.gov/pub/irs-pdf/f8863.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.