Lifetime Learning Credit

The Lifetime Learning Credit (LLC) is a tax credit that can be claimed for qualified education expenses paid for an eligible student. The credit is worth 20% of the first $10,000 of qualified education expenses, for a maximum credit of $2,000 per year. The LLC is available to taxpayers who are not claimed as a dependent on someone else's tax return and who have modified adjusted gross income (MAGI) of less than $80,000 ($160,000 for married couples filing jointly).

The LLC can be claimed for expenses paid for undergraduate or graduate-level education, as well as for courses taken to improve job skills. Qualified education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. They also include room and board, as well as transportation costs, if the student is enrolled at least half-time.

The LLC is claimed on Form 8863, which is filed with the taxpayer's annual income tax return. The credit is limited to the amount of tax liability that the taxpayer has after taking into account all other credits. Any unused credit can be carried forward for up to five years.

The LLC is a valuable tax break that can help offset the cost of education. However, it is important to be aware of the eligibility requirements and the limitations on the amount of the credit that can be claimed.

Here are some additional details about the Lifetime Learning Credit:

* The credit is available for taxpayers who are not claimed as a dependent on someone else's tax return.
* The credit is available for taxpayers with MAGI of less than $80,000 ($160,000 for married couples filing jointly).
* The credit is worth 20% of the first $10,000 of qualified education expenses, for a maximum credit of $2,000 per year.
* Qualified education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. They also include room and board, as well as transportation costs, if the student is enrolled at least half-time.
* The LLC is claimed on Form 8863, which is filed with the taxpayer's annual income tax return.
* The credit is limited to the amount of tax liability that the taxpayer has after taking into account all other credits.
* Any unused credit can be carried forward for up to five years.

If you have any questions about the Lifetime Learning Credit, please consult with a tax professional.