Updated October 18, 2026. Quick answer: Lines 27 to 30 figure the American opportunity credit for one student. Line 27 is the student’s adjusted qualified education expenses, entered up to the form’s cap. Lines 28 to 30 are arithmetic on that number, and line 30 is carried to Part I, line 1. The expense figure comes from the worksheet in the instructions.
IRS worksheets read line by line: Form 8863 Adjusted Qualified Education Expenses Worksheet.
What lines 27 to 30 ask for
The captions read “Adjusted qualified education expenses (see instructions). Don’t enter more than $4,000”, then “Multiply line 28 by 25% (0.25)”. Line 28 reads “Subtract $2,000 from line 27.” These lines are for students who passed the questions on the lines 23 to 26 page.
Line 27: adjusted qualified education expenses
The instructions say “Enter the student’s adjusted qualified education expenses for line 27.” They point to the worksheet: “Use the Adjusted Qualified Education Expenses Worksheet, later, to figure each student’s adjusted qualified education expenses. Don’t enter more than $4,000.”
What counts for this credit is spelled out: “Qualified education expenses include amounts paid for tuition, fees, and course materials, which include books, supplies, and equipment needed for a course of study, whether or not the materials are purchased from the educational institution as a condition of enrollment or attendance.” The tuition statement behind these amounts is explained at Form 1098-T box 1, and the reduction for grants is explained at Form 1098-T box 5. The adjusted figure is built on the line 31 page.
Lines 28 to 30: the form’s arithmetic
Line 28 subtracts the first $2,000 and line 29 takes a quarter of what is left. Line 30 reads “If line 28 is zero, enter the amount from line 27. Otherwise, add $2,000 to the amount on line 29 and enter the result.” The form’s own rules are all you need: “If zero or less, enter” zero on line 28.
Computed illustration, not an IRS example: suppose line 27 is $3,000. Line 28 is $3,000 minus $2,000, or $1,000. Line 29 is $1,000 times 0.25, or $250. Because line 28 is not zero, line 30 is $2,000 plus $250 for a total of $2,250. If instead line 27 were $1,500, line 28 would be zero and line 30 would be the $1,500 from line 27. These numbers only show how the lines connect; they are not a statement of what any student’s credit is.
Where the number comes from
Lines 28 to 30 come from line 27, and line 27 comes from the worksheet. The worksheet is a table, so read it in the instructions. The instructions warn about statements: “the amount in box 1 of Form 1098-T may be different from the amount you paid (or are treated as having paid).” They add “In completing Form 8863, use only the amounts you actually paid (plus any amounts you’re treated as having paid) in 2025”.
Where it goes next
Line 30 itself says “Include the total of all amounts from all Parts III, line 30, on Part I, line 1”. The instructions repeat it: “Enter the total of all amounts from all Parts III, line 30, on Part I, line 1.” Part I is covered on the lines 1 to 8 page. The line 30 caption also says to skip line 31, because the form cautions “If you complete lines 27 through 30 for this student, don’t complete line 31.” Education credits then reach your return through Schedule 3 line 3 and the refundable part on Form 1040 lines 29 to 31.
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
- Entering all of the expenses. The line 27 caption says “Don’t enter more than $4,000”.
- Using the box 1 figure from the school as the answer. The instructions say “the amount in box 1 of Form 1098-T may be different from the amount you paid (or are treated as having paid).”
- Filling in line 31 for the same student. The form cautions “If you complete lines 27 through 30 for this student, don’t complete line 31.”
Related: Form 1098-T box 1, Form 1098-T box 5, Schedule 3 line 3, 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.