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The Lifetime Learning Credit, provided by 26 U.S.C. ยง 25A (b), is available to taxpayers in the United States who have incurred education expenses. For this credit to be claimed by a taxpayer, the student must attend school on at least a part-time basis. The credit can be claimed for education expenses incurred by the taxpayer, the taxpayer's spouse, or the taxpayer's dependent.
The lifetime learning tax credit has the same income cutoffs as the American opportunity tax credit. You can claim the full credit up to an MAGI of $80,000/$160,000 single/married filing jointly.
This credit allows for the first $1,200 in "qualified tuition and related expenses," as well as half of qualifying expenses between $1,200 and $2,400, to be fully creditable against the taxpayer's total tax liability. The maximum amount of the credit is $1,800 per eligible student.
With the nonrefundable lifetime learning credit, you can claim a total of $2,000 per tax return for tuition only, regardless of how many students would be eligible.
The Lifetime Learning Credit is similar to the American Opportunity Tax Credit, but structured differently. It allows you to claim 20% of the first $10,000 you paid for tuition and fees in the ...
Form 1098-T was originally created in the Taxpayer Relief Act of 1997, [8] alongside the Hope Credit and the Lifetime Learning Credit (and, later, the American Opportunity Tax Credit ), to help taxpayers pay for postsecondary education.
The second, a lifetime learning credit, can be used toward an undergraduate, graduate or professional degree and is for up to $2,000 (based on 20% of qualified education expenses.) A parent cannot ...
In a tax tip published August 11, the IRS highlighted the benefits of the American opportunity tax credit and the lifetime learning credit for anyone heading back to school soon. Both are ...