LLC
The Lifetime Learning Credit allows up to $2,000 of credit for a student enrolled in at least one course throughout the tax year. The course can be in pursuit of a secondary education credential or simply to improve job skills. There is no limit on the number of years you can claim the LLC.
Qualified educational expenses must be incurred in a qualified educational institution, and you must meet the following conditions:
- 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.
You can include the cost of tuition, fees, and any books or supplies you are required to purchase directly from the school, so long as it’s a condition of enrollment.
At the end of the year, your educational institution should send you a Form 1098-T that reports your eligible costs. Though not required, use this form to help determine your eligibility and credit.
Filing Status and Income Limitations
To qualify for the LLC 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).
Since you can only claim 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 Education Credit.
Click here for more information on the Lifetime Learning Credit or contact us.
