Question:   If the amount of my qualified tuition and related expenses is greater than the amount of my scholarship, may I claim the excess expenses on Form 8863?

Answer:   Yes, fill out Form 8863 (PDF), Education Credits (American Opportunity, Hope and Lifetime Learning Credits).

• You must reduce the total qualified expenses by the amount of any tax-free educational assistance.
• Do not reduce the qualified expenses by amounts paid with the student's earnings, loans, gifts, inheritances, or personal savings.
• Also, do not reduce the qualified expenses by any scholarship reported as income on the student's return or any scholarship that, by its terms, can not be applied to qualified tuition and related expenses.