Do You Qualify for a Lifetime Learning Credit?
The Lifetime Learning Credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution.
This credit can help pay for undergraduate, graduate, and professional degree courses, including courses to acquire or improve job skills.
There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return.
Who Can Claim the LLC?
To claim an LLC, you must meet all three of the following:
1. You, your dependent, or a third party pays qualified education expenses for higher education.
2. You, your dependent, or a third party pays the education expenses for an eligible student enrolled at an eligible educational institution.
3. The eligible student is yourself, your spouse, or a dependent you listed on your tax return.
Quick check: Use the interactive app, Am I Eligible to Claim an Education Credit, to find out if you can claim an education credit or the tuition and fees deduction.
Who is an Eligible Student for an LLC?
To be eligible for an LLC, the student must:
• Be enrolled or taking courses at an eligible educational institution
• Be taking a higher-education course or courses to get a degree or other recognized education credential or to get or improve job skills
• Be enrolled for at least one academic period* beginning in the tax year
*“Academic period” can be semesters, trimesters, quarters, or any other period of study, such as a summer school session. Academic periods are determined by the school. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period.
What Are the Income Limits for an LLC?
• To claim the full credit, your MAGI (modified adjusted gross income) must be $65,000 or less or $131,000 or less if you are married and filing jointly.
• If your MAGI is between $55,000 and $65,000 (between $111,000 but less than $131,000 for married filing jointly), you receive a reduced amount of the credit.
• If your MAGI is more than $65,000 ($130,000 for joint filers), you cannot claim the credit.
• MAGI for most people is the amount of AGI (adjusted gross income) shown on your tax return. On Form 1040A, AGI is on line 22 and is the same as MAGI. If you file Form 1040, AGI is on line 38 and you add back the following:
• Foreign earned income exclusion
• Foreign housing exclusion
• Foreign housing deduction
• Income excluded as bona fide residents of American Samoa or of Puerto Rico
For more information about the LLC and other learning tax deductions, visit www.irs.gov. BW