TAX ACTIVITY #$2-$ Complete Form $8863,$ Form $8863$ Credit Limit Worksheet, & Schedule $3$

Ryan $(391-00-1414.$ DOB $10/23/76)$ and Blake $(391-00-1515.$ DOB $8/25/87)$ Reynolds file a joint tax

return for $2023.$ Their AGI is $$65,000($Form $1040,$ Line $11)$ and tax liability is $$4,039($Form $1040,$ Line

$.$ Ryan $($a college graduate$)$ paid $$1,100$ in $2023$ to take $2$ courses at MATC to improve his job

skills at work. He received a $1098-$T for the tuition paid. Ryan and Blake have a $19-$year$-$old daughter,

Betty $(391-00-1616.$ DOB $12/01/2004),$ who is enrolled full$-$time at the University of Minnesota. Ryan

and Blake paid Betty's tuition $$24,000,$ books $$500$ and room & board fees $$14,000.$ Betty is claimed

as a dependent. Betty received a $1098-$T$.$ She has never been arrested or convicted of any crimes

and has not completed the first four years of post$-$secondary education before $2023.$ Complete the

requested tax forms, including Form $8863$ Part III for each student.

Fam $1096-$T

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Form $1098-$T

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Deparment of the Treasury $-$ intemar Roenue Servios

Credit Limit Worksheet

Complete this worksheet to figure the amount to enter on line $19.$

Enter the amount from Form $8863,$ line $18$

Enter the amount from Form $8863,$ line $9$

Add lines $1$ and $2$

Enter the amount from:

Form $1040$ or $1040-SR,$ line $18$

Enter the total of your credits from:

Schedule $3($Form $1040),$ lines $1,2,6$d and $61$

Enter the total of your credits from:

Schedule $3($Form $1040),$ lines $1,2,6$d and $6l$

Subtract line $5$ from line $4$

Enter the smaller of line $3$ or line $6$ here and on Form $8863,$ line $197.$