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Line 26 Check “Yes” if the student was convicted, before the end of 2021, of a federal or state felony for possession or distribution of a controlled substance. If you checked “No,” complete lines 27 through 30 for this student. If you checked “Yes,” the student isn't eligible for the American opportunity credit; skip lines 26 through 30 and go to line 31. You cannot claim the American opportunity credit and the lifetime learning credit for the same student in the same year. If you complete lines 27 through 30 for this student, don't complete line 31. American Opportunity Credit Line 27 Enter the student's adjusted qualified education expenses for line 27. See Qualified Education Expenses, earlier. Use the Adjusted Qualified Education Expenses Worksheet, later, to figure each student's adjusted qualified education expenses. Don't enter more than $4,000. Enter the total of all amounts from all Parts III, line 30, on Part I, line 1. Lifetime Learning Credit Line 31 Enter the student's adjusted qualified education expenses on line 31. See Qualified Education Expenses, earlier. Use the Adjusted Qualified Education Expenses Worksheet next to figure each student's adjusted qualified education expenses. Enter the total of all amounts from Part III, line 31, on Part II, line 10. CAUTION ! Adjusted Qualified Education Expenses Worksheet See Qualified Education Expenses, earlier, before completing. Complete a separate worksheet for each student for each academic period beginning or treated as beginning (see below) in 2021 for which you paid (or are treated as having paid) qualified education expenses in 2021. 1. Total qualified education expenses paid for or on behalf of the student in 2021 for the academic period . . . . . . . . . . . . . . . . . .

2. Less adjustments: a. Tax-free educational assistance received in 2021 allocable to the academic period . . . . . . . . . . . .

b. Tax-free educational assistance received in 2022 (and before you file your 2021 tax return) allocable to the academic period . . .

c. Refunds of qualified education expenses paid in 2021 if the refund is received in 2021 or in 2022 before you file your 2021 tax return . . . . . . . . . .

3. Total adjustments (add lines 2a, 2b, and 2c) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Adjusted qualified education expenses. Subtract line 3 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . .

If you're claiming an education credit for more than one student, complete a separate Part III for each student before returning to page 1 to complete Parts I and II. If any qualified education expenses for the student were paid in 2021 for an academic period beginning in the first 3 months of 2022, treat that academic period as if it began in 2021. See Student qualifications and Prepaid Expenses, earlier. CAUTION ! -8- Instructions for Form 8863 (2021)