What this line means
The total nonrefundable education credit from Form 8863 that flows to Schedule 3, line 2. This is the final nonrefundable amount combining the 60% nonrefundable portion of the AOTC and the Lifetime Learning Credit, after income phase-outs and the tax liability limitation. 1 The refundable 40% of the AOTC goes separately to Form 1040, line 29 — it is not included here. Enter this number on Schedule 3, line 2, where it joins your other nonrefundable credits.
Does this apply to you?
- You completed Form 8863 and have a nonrefundable education credit after all limitations
- You are filing Schedule 3 to report additional credits
- You owe enough tax for the nonrefundable credit to reduce your liability
Easy to overlook
This line only captures the nonrefundable piece — the refundable AOTC goes elsewhere Filers sometimes enter the line 19 amount on their return and think they claimed the full education credit. But 40% of the AOTC is refundable and appears on Form 1040, line 29 (from Form 8863, line 4). If you only transfer line 19, you leave up to $1,000 per student on the table. 2 IRS Publication 970 — Claiming education credits
The credit flows through Schedule 3, not directly to Form 1040 Line 19 goes to Schedule 3, line 2. Schedule 3 totals your nonrefundable credits, and that total then flows to Form 1040, line 20. Missing this routing step — or entering the credit on the wrong line — causes processing delays. 3 IRS Form 8863 instructions — Line 19
Watch out for this
Do not double-count the education credit. The nonrefundable amount on line 19 and the refundable amount on line 4 together represent your total education credit. Adding them and entering that combined number anywhere on your return creates an error. Each amount has a specific destination: line 19 goes to Schedule 3 line 2, and line 4 goes to Form 1040 line 29. Keep them separate.
Footnotes
-
IRS Form 8863 Instructions, Line 19. https://www.irs.gov/instructions/i8863 ↩
-
IRS Publication 970, Tax Benefits for Education, Claiming the Credit. https://www.irs.gov/pub/irs-pdf/p970.pdf ↩
-
IRS Form 8863 Instructions, Where to Report. https://www.irs.gov/instructions/i8863 ↩