What Is the Lifetime Learning Credit and Who Can Use It?
Making Education More Affordable – Even After Graduation
If you’re paying for education – whether you’re working on your degree, taking night classes, or pursuing professional development – you may be leaving money on the table if you’re not taking advantage of the Lifetime learning credit.
✅ What Is the Lifetime Learning Credit?
The Lifetime Learning Credit is a tax credit worth up to $2000 per year to help offset the cost of post-secondary education. It’s designed for students of all ages and career stages. Unlike the American Opportunity Credit, the Lifetime Learning Credit can be used for an unlimited number of years, making it ideal for lifelong learners.
👩🎓 Who Can Claim the Credit?
You may qualify if:
- You, your spouse, or your dependent is enrolled in at least one eligible course
- You’re paying qualified tuition or fees to a recognized institution
- Your Adjusted Gross Income (AGI) is:
- $90,000 (Single)
- $180,000 (married filing joint)
💵 What Expenses Are Covered?
Eligible expenses include:
- Tuition and fees required for enrollment
- Books, supplies, or equipment only if required by the course
You can’t include:
- Room and board
- Transportation
- Insurance
🧾 Important Things to Know:
- The credit is non-refundable- it can reduce your tax bill, but won’t get you a refund if you owe nothing.
- You must file a Form 8863 with your return
- You can’t double dip- you must choose between education credits if eligible for more than one.
🎯 Why This Matters
For middle-income earners investing in their education or helping their kids through college, the Lifetime Learning Credit can significantly ease the financial burden. It’s one of the few credits that encourages lifelong learning, making it valuable even beyond your undergraduate years.