Lifetime Learning Credit
A federal tax credit of up to $2,000 per tax return (20% of up to $10,000 in qualified education expenses) for taxpayers who pay tuition and fees for higher education — with no limit on the number of years it can be claimed.
Unlike the American Opportunity Credit, the Lifetime Learning Credit is available for graduate courses and professional development, not just the first four years of college.
Income phase-out: 2025 limits are $80,000–$90,000 (single) and $160,000–$180,000 (married filing jointly).
Cannot be claimed in the same year as the American Opportunity Credit for the same student.
→ The Lifetime Learning Credit is not refundable — it can only reduce your tax liability to $0.
Also known as
Related terms
- FAFSA
The form students must complete each year to determine eligibility for federal financial aid, including Pell Grants, federal student loans, work-study, and many institutional scholarships.
- Pell Grant
A federal need-based educational grant available to undergraduate students who have not yet earned a bachelor's degree, providing funds that do not need to be repaid.
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Frequently asked questions about Lifetime Learning Credit
What is the Lifetime Learning Credit?+
The Lifetime Learning Credit helps you pay for college or job training. It's a tax credit that can lower the amount of tax you owe. You can claim it for courses taken to earn a degree or to gain new job skills. There is no limit to how many years you can claim it.
Who can get the Lifetime Learning Credit?+
You can get this credit if you are taking college classes or training to get a job. This includes students going for a degree or taking classes to improve job skills. You must be enrolled in an eligible educational program. Your income must also be below a certain amount.
How do I apply for the Lifetime Learning Credit?+
You apply for the Lifetime Learning Credit when you file your federal tax return. You will need Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits). Make sure to keep records of your qualified education expenses, like tuition payments, to claim the credit.
How much money can I get from the Lifetime Learning Credit?+
You can get up to $2,000 for the Lifetime Learning Credit each year. This is 20% of your first $10,000 in qualified education costs. The amount you get depends on how much you spent on tuition and fees. It also depends on your income when you file your taxes.