 Income Tax 2022-2023 Education Credits Overview. Let's do some wealth preservation with some tax preparation. Most of this information comes from instructions for Form 8863 Education Credits American Opportunity and Lifetime Learning Credits Tax Year 2022. You can find on the IRS website irs.gov, irs.gov, looking at the income tax formula. We're at the bottom here looking at the credits area. Remember in the first half of the income tax formula is in essence an income statement. Although a strange one, the bottom line being the taxable income similar to net income, the bottom line of a normal income statement. We then calculate the tax on the taxable income, not with one rate, not with a flat tax, but instead with a progressive tax system to get to the tax before credits and other taxes. Then we're finally getting to that credit area as well.