Updated October 18, 2026. Quick answer: Lines 23 to 26 are four yes or no questions for each student. They ask about prior years of the American opportunity credit, half-time enrollment, four years of postsecondary study and a drug felony conviction. You answer them from the student’s history, and the answers decide whether you complete lines 27 to 30 or skip to line 31.
IRS worksheets read line by line: Form 8863 Adjusted Qualified Education Expenses Worksheet.
What the four questions are
The questions are printed on the form as “Has the American opportunity credit been claimed for this student for any 4 prior tax years?” for line 23 and “Did the student complete the first 4 years of postsecondary education before 2025?” for line 25. Each has its own routing. This page sits inside the Form 8863 walk-through, after the student details on the lines 20 to 22 page.
Line 23: prior years of the credit
The instructions say “If the American opportunity credit has been claimed for this student for any 4 tax years before 2025, the American opportunity credit cannot be claimed for this student for 2025.” They then say to check Yes and go to line 31. For the other answer: “If the American opportunity credit has been claimed for this student for 3 or fewer prior tax years, check” No.
Line 24: at least half-time enrollment
The form asks “Was the student enrolled at least halftime for at least one academic period that began or is treated as having begun in 2025”. The instructions explain the test: “the student enrolled at least halftime for at least one academic period that began or is treated as having begun (see below) in 2025 at an eligible educational institution in a program leading towards a postsecondary degree, certificate, or other recognized postsecondary educational credential.”
They also address a school term that starts early in the next year: “If any qualified education expenses for the student were paid in 2025 for an academic period beginning in the first 3 months of 2026, treat that academic period as if it began in 2025.” On a No answer, “the student isn’t eligible for the American opportunity credit; skip lines 25 through 30 and go to line 31.” The half-time checkbox on the school’s statement is explained at Form 1098-T box 8.
Line 25: the first four years of postsecondary education
The instructions define the term: “A student has completed the first 4 years of postsecondary education before 2025 if the educational institution has awarded the student 4 years of academic credit at that institution for postsecondary coursework the student completed before 2025.” They add “Disregard any academic credit awarded solely on the basis of the student’s performance on proficiency examinations.” On a Yes answer, “the student isn’t eligible for the American opportunity credit; skip lines 26 through 30 and go to line 31.”
Line 26: the felony question
The instructions say to answer Yes if “the student was convicted, before the end of 2025, of a federal or state felony for possession or distribution of a controlled substance.” The same rule appears among the student requirements: “As of the end of 2025, the student had not been convicted of a federal or state felony for possessing or distributing a controlled substance.”
The instructions then route the answer: “If you checked “No,” complete lines 27 through 30 for this student.” On a Yes, the same sentence sends you past lines 27 to 30 to line 31.
Where the answers come from
There is no dollar amount on these lines. The answers come from the student’s history: the prior returns on which the credit was claimed, the enrollment record, the credits the school has awarded and any conviction. The school statement is explained on the Form 1098-T page. A student who stops at a gate may still be able to use line 31, covered on the line 31 page.
Where it goes next
A No on line 23, a Yes on line 24, and a No on lines 25 and 26 take you to lines 27 to 30 and the form cautions: “You can’t take the American opportunity credit and the lifetime learning credit for the same student in the same year.” Those lines are covered on the lines 27 to 30 page. A Yes on line 23, a No on line 24, or a Yes on line 25 or 26 sends you to line 31 for that student.
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 header 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
- Counting a year the credit was never claimed. The rule is about years in which it “has been claimed for this student”, and the instructions’ own comparison is “4 tax years before 2025”.
- Answering the felony question for the wrong year. The instructions say the conviction counts if it was “before the end of 2025”.
- Treating credit earned by exam as time in school. The instructions say “Disregard any academic credit awarded solely on the basis of the student’s performance on proficiency examinations.”
Related: Form 1098-T box 8, Form 1098-T, education credits, and Schedule 3 line 3.
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.