Use the statement provided to enter enrollee and institution information; do not enter amounts directly in the input screen. If you do not use the statement, Form 8815 is incomplete. The information that follows describes the fields that appear in the attached statement.

• Enrollee SSN: From the fieldview, select the social security number of the person who was enrolled at, or attended, an eligible educational institution during 2018.

  Notes

  • When the Require a password to display SSNs box is marked in the Setup > Security > Security Configuration tab, the Social Security number displays as "###-##-####." For more information about masking Social Security numbers, see Masking SSNs for 1040 clients with preparers outside the U.S.
  • In addition to the taxpayer and spouse Social Security numbers, the Social Security numbers of most dependents entered in the 1040 screen are available in the fieldview.
• First Name / Last Name: The application automatically enters the first and last names of the eligible student based on the selected Social Security number.
• Educational Institution, Address, City, State, Zip: Enter the name and address of the eligible educational institution that the enrollee attended.
• Qualified Expenses: Enter the total amount paid in 2018 for qualified higher education expenses. Do not include expenses that were covered by nontaxable education benefits paid directly to or by the educational institution. Also, do not include expenses used to calculate an education credit or the nontaxable amount of a distribution from a Coverdell ESA or QTP.
• Nontaxable Benefits: Enter the total of any nontaxable educational benefits received for 2018.
• Qual Educ Prog Type: Enter ESA if the taxpayer contributed to a Coverdell ESA for the enrollee. Or, enter the QTP if the taxpayer contributed to a Qualified Tuition Plan (QTP) for the enrollee.
• Financial Institution/Program Name, Address, City, State, Zip Code: Enter the name and address of the financial institution where the Coverdell ESA account is located, or for contributions to a QTP, enter the name and address of the program. This field contains a linked custom fieldview, which enables you to automatically enter data in the related Name, Address, City, State, and Zip Code fields. Click the down arrow and choose Edit Multi-field Custom Fieldview to open the Custom Fieldview dialog, in which you can enter, edit, or select a fieldview item for these linked fields. See What is a custom fieldview? for more information about linked custom fieldviews.

Enter total principal and interest proceeds from all Series EE and I U.S. savings bonds issued after 1989 and cashed in 2018.

Amounts entered in this field transfer to Form 8815. The amount in this force field overrides any code 7 Series EE and I bonds eligible for Form 8815 interest amounts entered in the statement attached to the Interest income field in the Schedule B - Interest and Dividend Income section in the B&D screen.

Enter the amount of interest paid during 2018 on a qualified education loan in the Qualified education loan interest paid in 2018 field, or in the attached statement. The statement includes the following fields.

• Recipient/Lender: Enter the name of the lender.
• Interest Received by lender (Box 1): Enter the amount to be treated as qualified education loan interest paid in 2018 and reported on the Student Loan Interest Deduction Worksheet.
• Loan Origination Fees (Box 2): This field contains data shared from the Source Data Entry Utility and is not required when manually entering data in the statement. Data in this field does not change the amount entered in the Interest Received by lender (Box 1) field, which is treated as qualified education loan interest paid in 2018 and reported on the Student Loan Interest Deduction Worksheet.

  Only loan origination fees for the use of money are deductible. If the loan origination fees are for other property or services (for example, commitment or processing fees) they are not deductible. Use the Deductible Amount If Different from Box 1 field if the Box 1 amount contains nondeductible loan origination fees. A diagnostic indicates when data exists in this field.

  Note: If your loan was made before Sept. 1, 2004, you may be able to deduct loan origination fees and capitalized interest not reported in box 1. For more information, refer to IRS Publication 970, Tax Benefits for Education.

• Deductible Amount If Different from Box 1: Enter the deductible amount of student loan interest only when it is different than the amount entered in the Interest Received by lender (Box 1) field. Zero (0) may be entered in this field if applicable. To determine the deductible portion, refer to IRS Publication 970, Tax Benefits for Education.
• State: Enter the state postal code in this field.
• State use code: For Massachusetts, student loan interest is a deduction on Schedule Y. 1 = Undergraduate [MA], 2 = Graduate [MA], 3=Exclude[MA]. If this field is left blank, Massachusetts treats student loan interest as Undergraduate interest.

  Note: [ ] denotes state use codes that are available when the Massachusetts return is attached to the open client, even when the corresponding State field does not contain the Massachusetts postal code.

• Do Not Proforma: Enter X in this field to delete the item on next year's proforma.

The maximum student loan interest deduction for the current tax year is $2,500. A qualified loan must be for the taxpayer, spouse, or taxpayer's dependent at the time of the loan. A taxpayer who is the dependent of another, or married individuals not filing jointly, are not allowed to take the deduction. Enter the amount paid separately by the taxpayer or spouse for any qualified individual. Do not use the qualified education loan interest entered here as a deduction under another section of the Internal Revenue Code.

The UltraTax CS Source Data Entry utility shares data to the following fields in this statement: TS, Description, Interest Received by Lender (Box 1), and Loan Origination Fees (Box 2).

Enter the amount of the adjustment to the calculated modified adjusted gross income. A negative entry is treated as a subtraction.

Enter X in this field if the taxpayer is a dependent of another and is claiming the student loan interest deduction. If the Dependent of another field in the 1040 screen contains data for either the taxpayer or the spouse in the 1040 screen, you must enter X in this field to calculate the Student Loan Interest Deduction Worksheet. Refer to IRS Publication 970 for information on who can claim a dependent's student loan interest.

The Education Expense Optimization utility is currently disabled because the tuition and fees tax deduction has expired. If the deduction is extended, the utility will again be available.

Use the attached statement for the tuition and fees deduction and education credits. The information that follows describes the fields that appear in the statement.

• Ed Exp Code: Select 1 from the fieldview to indicate the American Opportunity Credit, 2 to indicate the Lifetime Learning Credit.

• Student's Social Security Number: Select the student's Social Security number from the fieldview.

  Notes

  • When the Require a password to display SSNs box is marked in the Setup > Security > Security Configuration tab, the Social Security number displays as "###-##-####." For more information about masking Social Security numbers, see Masking SSNs for 1040 clients with preparers outside the U.S.
  • In addition to the taxpayer and spouse Social Security numbers, the Social Security numbers of most dependents in the 1040 screen are available in the fieldview. Only dependents in the 1040 screen with Dependent Code 5 (Qualifying child for EIC only) are not available in the fieldview.
  • If the student does not have a Form 1098-T (or an acceptable substitute) but has qualified education expenses paid to a qualified educational institution, enter the qualified expenses in the Pymt Rec'd Qual Tuition column.
  • You must enter a complete address of the institution, regardless of whether the student received a 1098-T.
  • When the same student attends multiple institutions, the following fields must be the same on each row in order to properly identify the applicable credit or deduction for that student: TS, EdExp Code, Student's SSN, First Name, Last Name, AOTC Disqualifier, PY Hope (AOTC Credit), and Graduate Student.
• First Name / Last Name: The application automatically enters the first and last names of the eligible student based on the chosen Social Security number.
• Pymt Rec'd Qual Tuition: Using information from Form 1098-T, box 1, enter the qualified higher education expenses for the year. If the amount from any Form 1098-T differs from the amount actually paid, enter the amount paid. The application uses the amount in this column in the calculation of Form 8863, line 27 or 31, as applicable. Do not include expenses used to calculate the nontaxable amount of a distribution from a Coverdell ESA or QTP or an education deduction elsewhere on the return.
• Scholarships and Grants: Enter any Scholarships and Grants received and reported on Form 1098-T box 5. Amounts included in this field reduce the amount of qualified expenses entered in the Pymnt Rec'd Qual Tuition column which are used in calculating either the American Opportunity Tax Credit or the Lifetime Learning Credit for the education institution listed on this line. The amount in this column is included in the calculation of Form 8863, line 27 or 31 as applicable.
• Non-qualified Expenses: Enter the amount of any scholarships and grants that were used to pay for nonqualified expenses that you are including as income as explained in Publication 970. Including this amount in taxable income may increase the education credit. The amount in this column is included in the calculation of Form 8863, line 27 or 31, as applicable. Do not include expenses used to calculate the nontaxable amount of a distribution from a Coverdell ESA or QTP or an education deduction elsewhere on the return.
• Ins Contract Reimb: Enter any Insurance Contract Reimbursements received that were reported on Form 1098-T box 10. Amounts included in this field reduce the amount of qualified expenses entered in the Pymt Rec'd Qual Tuition column. The amount in this column is included in the calculation of Form 8863, line 27 or 31 as applicable.
• Non-institution expenses: Enter the amount of qualified education expenses that were not paid directly to the education institution. These amounts will not be included as education expenses should a credit or deduction other than the American Opportunity Credit be the most beneficial during the optimization process. The amount in this column is included in the calculation of Form 8863 line 27, if applicable. Do not include expenses used to calculate the nontaxable amount of a distribution from a Coverdell ESA or QTP or an education deduction elsewhere on the return.
• AOTC disqualifier: Select a code from the fieldview if the student is not eligible for the American Opportunity Credit. Select 1 for not pursuing degree; select 2 for not enrolled at least half-time; select 3 for felony drug conviction; select 4 for 4 yrs postsecondary educ before 2018. By default, the application assumes the eligible student is a full-time student.

• PY Hope (AOTC) Credit: Select 1 from the fieldview if the American Opportunity (or Hope) Credit was claimed in one prior tax year, 2 if the American Opportunity (or Hope) Credit was claimed in two prior tax years, 3 if the American Opportunity (or Hope) Credit was claimed in three prior tax years, or 4 if the American Opportunity (or Hope) Credit was claimed in four prior tax years. Each student is only entitled to claim the American Opportunity Credit for four tax years, including any years the Hope Credit was claimed.

  Note: The application will track this information in future years. If this field is blank and the American Opportunity Credit is claimed in the current year, code 1 proformas to next year. If you enter 1 and the American Opportunity Credit is claimed in the current year, code 2 proformas to next year. If the American Opportunity Credit is claimed in the current year, code 3 proformas to next year.
• Graduate Student: For Kentucky, Massachusetts, and New York returns, a 1 in this field indicates the amount is graduate-level related and does not qualify for education credits or deductions.
• 2018 1098-T Received: Enter X in this column if the student received a Form 1098-T. The application marks Yes on Form 8863, line 22a(2). If the student received a 2018 Form 1098-T, the institution's federal identification number is required.
• 2017 1098-T Box 7 marked: Enter X in this column if the student received a Form 1098-T in 2017 with box 2 filled in and Box 7 checked. The application marks Yes on Form 8863, line 22a(3). The institution's federal identification number is required if an X is entered in this column.

  Note: If an X is not entered in either of these columns then the institutions federal identification is not required on Form 8863, line 22(f).

• State: Select the applicable state postal code from the fieldview.

• State Use: The codes that are available in this field are specific to the state postal code entered in the State field. If state use codes are not applicable to the entered state, state use codes will not be available.

  For Arkansas returns: Select 1 from the fieldview to indicate a two-year institution for Arkansas purposes; select 2 to indicate a four-year institution for Arkansas purposes; select 3 to indicate a technical institution for Arkansas.

  For District of Columbia returns: Select 5 to indicate an expenditure that is for a teacher in the District of Columbia.

  For Oregon returns: Select 4 from the field view to indicate that the amount of scholarship in excess of the tuition and fees charged was used for housing expenses and qualifies as a subtraction on the Oregan return.

• Institution EIN: Enter the Employer Identification Number (EIN) of the educational institution where the education expenses were incurred. This field contains a linked custom fieldview, which enables you to automatically enter data in the related Name, Address, City, State, and Zip Code fields. Click the down arrow and choose Edit Multi-field Custom Fieldview to open the Custom Fieldview dialog, in which you can enter, edit, or select a fieldview item for these linked fields. Press CTRL+S to save the field in the fieldview. See Custom fieldviews overview for more information about linked custom fieldviews.
• Inst. Changed Method: This field will only have data if it is retrieved using the UltraTax CS Source Data Entry utility. If this field contains data, the application issues a diagnostic stating that an amount was shared by the UltraTax CS Source Data Entry utility from Form 1098-T. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. Review the prior year return and consider filing an amended return if necessary.

  Note: You cannot modify this column and the information is only available when using the UltraTax CS Source Data Entry utility. The information is not used in any current year calculations.

• Amts for 2019 Semester: If this field contains data from the UltraTax CS Source Data Entry utility, a diagnostic states that an amount was shared by the UltraTax CS Source Data Entry utility from Form 1098-T. An entry in this field will be used in the following year to determine whether an institution's federal identification number is required on Form 8863, line 22(4).
• Adj for Prior Yr: This field will only have data if it is retrieved using the UltraTax CS Source Data Entry utility. If this field contains data, a diagnostic states that an amount was shared by the UltraTax CS Source Data Entry utility from Form 1098-T. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. Review the prior year return and consider filing an amended return if necessary.

  Note: You cannot modify this column and the information is only available when using the UltraTax CS Source Data Entry utility. The information is not used in any current year calculations.

• Adj to Schol Prior Yr: This field will only have data if it is retrieved using the UltraTax CS Source Data Entry utility. If this field contains data, a diagnostic displays stating that an amount was shared by the Source Data Entry utility from Form 1098-T. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. Review the prior year return and make adjustments as necessary. See Publication 970 for additional guidance.

  Note: You cannot modify this column and the information is only available when using the UltraTax CS Source Data Entry utility. The information is not used in any current year calculations.

• Do Not Proforma: Enter X in this field to delete the item on next year's proforma.

Enter X in this field to exclude a state from the optimization process.

Use this field to make adjustments to modified adjusted gross income if necessary. This field applies to the calculations for both the tuition and fees deduction and the education credits. The application automatically includes the foreign earned income exclusion. A negative entry is treated as a subtraction.

Enter the amount of additional tax to be included in this year's return due to receipt of tax-free educational assistance or refunds of qualified expenses after educational credits have been claimed on a prior year's return. The tax on the recapture amount is the difference between the education credit claimed on the prior year return and the re-figured education credit calculated from qualified educational expenses as adjusted by expenses, which have been refunded, or assistance received.

The following table depicts the deductibility rules for qualified education expenses used in determining the American Opportunity or Lifetime Learning Credits:

Enter X in this field if the taxpayer is a dependent of another, but is eligible to claim an education credit for qualified education expenses paid during the tax year. Per IRS Publication 970, Tax Benefits for Education, if a taxpayer does not claim an exemption on his/her tax return for a dependent who is an eligible student (even if entitled to the exemption), then the dependent can claim the credit. For additional details about who can claim a dependent's expenses, refer to Publication 970.