Lifetime Learning Credit — LLC
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.
Official source: irs.gov
The Lifetime Learning Credit (LLC) helps taxpayers pay for higher education costs. It offers a tax credit of up to $2,000 per tax return, which is 20% of up to $10,000 in qualified education expenses. This credit is useful for those taking graduate courses or professional development classes, unlike the American Opportunity Credit, which is only for the first four years of college.To qualify for the LLC, your income must be below certain limits. For the tax year 2025, the income phase-out starts at $80,000 for single filers and $160,000 for married couples filing jointly. If your income exceeds these limits, the credit may be reduced or eliminated.You cannot claim the LLC in the same year as the American Opportunity Credit for the same student. Additionally, the LLC is not refundable, meaning it can only lower your tax bill to zero but will not result in a refund. For example, if you owe $1,500 in taxes, the LLC can reduce your bill to zero, but you will not receive any money back. See also: <a href="/glossary/fafsa">FAFSA</a>.
In real life
- A person takes classes at community college to learn new job skills.
- Someone goes back to school to finish a degree they started years ago.
- A student takes one college class in the summer to get ahead.
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Frequently asked questions about Lifetime Learning Credit
What is 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.
Who qualifies for Lifetime Learning Credit?+
Eligibility rules vary. Use BK's free Benefit Eligibility Screener to see if you may qualify based on your situation.
How do I apply for Lifetime Learning Credit?+
BenefitKarma's free Benefit Eligibility Screener can point you to the right application path.
Where can I get help?+
Use BenefitKarma's free Benefit Eligibility Screener to see what programs you may qualify for. The Find Benefits tool tool also lets you browse programs by state.
Source: irs.gov