Lifetime Learning Credit

The Lifetime Learning Credit is a tax incentive for people taking classes to improve their job skills or get a degree. The credit is 20% of the first $10,000 of qualified expenses, for a total credit of $2,000.

Why It’s Important

The Lifetime Learning Credit is a tax benefit available to many students and their families. The LLC is a tax credit that can be claimed yearly to help defray higher education costs. 

So What Exactly Is This Credit?

The Lifetime Learning Credit is a non-refundable tax credit equal to 20% of up to $10,000 spent on qualified education expenses annually. The Lifetime Learning Credit is available for graduate and undergraduate students; however, it can only be claimed once per year by any single student or family. 

How Do I Qualify?

To qualify, you must meet certain income requirements set by the IRS and have paid tuition for an eligible educational program. The credit can be used towards courses taken to acquire or improve job skills, as well as courses taken at a college or university leading to a degree. 

How Does The Lifetime Learning Credit Work?

Basically, when you file your taxes, you can claim a credit of up to $2,000 for qualified tuition and fees that you paid during the tax year. The amount of the credit is based on the total cost of your tuition and fees minus any scholarships or grants you received.

Benefits

1. The LLC can reduce your taxes dollar-for-dollar up to the maximum amount.  2. If you’re a working adult taking classes to improve your job skills or get certified in a new field, the LLC can help you pay for those expenses.