I have a 1996 850 Turbo Wagon.

I know the XC 70 Wagon sits higher off the ground than the 850.

What makes the XC 70 sits higher?

I would like to make my 850 sits higher off the ground.

1) Can that be done?
2) How?

 

Maybe possible. Not sure. In a Toyota Landcruiser with a solid axle in front, just change to longger shocks and coil springs. In a front drive car, maybe have to change a few suspension bits. Not adviceable to lift the 850 though. You'll have problems with alignment and driving feels if not done right.