Lifetime Learning Credit

The Lifetime Learning Credit is one of two tax credits, along with the American Opportunity Credit, that help offset the costs of higher education. The Lifetime Learning Credit can reduce your tax burden, but it is not a refundable credit; which means that it cannot give you any money back in the form of a refund.

You can claim the Lifetime Learning Credit (LLC) for up to $2,000 of an eligible student’s qualified higher education expenses. The student must maintain enrollment in a minimum of one course during the tax year. This course can be taken in pursuit of a secondary education credential or for the purpose of enhancing job skills.

Eligiblity Requirements

To be eligible for the LLC, qualified educational expenses must be paid to a qualified educational institution and the following conditions must be met:

• Paid qualified education expenses of higher education.
• You paid the education expenses for an eligible student.
• The eligible student is yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.
• Limited to one education credit per student on a return.
• Cannot claim the Lifetime Learning Credit and the American Opportunity Credit for a single student in one tax year.
• Enrolled and attended the institution’s academic periods.

Allowable costs include tuition, fees, and required books or supplies purchased directly from the school as a condition of enrollment.

Unlike the American Opportunity Credit, which you can claim for no more than four tax years, there is no limit on the number of years you can claim the Lifetime Learning credit.

Income Limitations

There are income limitations to qualify for the LLC. For instance, in 2024, your modified adjusted gross income (MAGI) must be:

• Single: $80,000 or less
• Married Filing Jointly: $160,000 or less
• You are not eligible for the credit if your income exceeds $90,000 ($180,000 for joint filers).

Be aware that you can only choose one education tax benefit per student. Our system automatically determines if the Lifetime Learning Credit can be applied or if it would be in your best interest to claim the American Opportunity Credit.

Have more questions? Please contact us.

This entry was posted on Thursday, June 14th, 2018 at 5:59 pm and is filed under Credits, Tax Related Questions. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.