Yes, you may claim the excess expenses on Form 8863 if the amount of your qualified tuition and related expenses is greater than the amount of your scholarship. According to the information provided, if your qualified education expenses exceed the amount of your scholarship, you can claim the excess expenses on Form 8863, provided that these expenses are for an academic period that begins during the same tax year as the academic period for which the scholarship is received.
Additionally, it is important to ensure that the excess expenses are indeed qualified education expenses. Qualified education expenses generally include amounts paid for tuition and fees required for the student's enrollment or attendance at an eligible educational institution. These expenses can be paid in various forms, such as cash, check, credit or debit card, or borrowed funds.
Furthermore, the qualified education expenses should not be reduced by amounts paid with funds received as payment for services, loans, gifts, inheritances, or withdrawals from personal savings. Also, if you receive tax-free educational assistance or a refund, you may choose to reduce your qualified education expenses for the subsequent year instead of the current year.
In summary, as long as the excess expenses are qualified education expenses and meet the criteria outlined, you can claim them on Form 8863 to potentially increase your American Opportunity Credit.
Sources:
Publication 970 (2023)
1040 (2023)
§ 25A. American Opportunity and Lifetime Learning credits
Instructions for Form 8867 (11/2023)
Instructions for Form 1040-NR-EZ (2019)
Instructions for Form 8863 (2023)
Instructions for Form 8862 (12/2023)
