The Lifetime Learning Credit is a tax credit that you may be able to claim against your federal income taxes for qualified tuition and expenses paid during the tax year.
The Lifetime Learning Credit is especially attractive for adult e-learners as it may be claimed for all years of your higher education (as opposed to the Hope Credit), and may be claimed whether or not your higher education is a part of a degree program or not. The credit only requires that your enrollment be for one college course or more, including courses taken to improve job skills.
The maximum Lifetime Learning Credit that may be claimed on a single tax return is $2,000.
Only one tax credit, Hope or Lifetime Learning, can be claimed against your higher education expenses for a particular tax year. In addition, you may not use either credit if you claim the Tuition and Fees Deduction.
Your income level may affect the amount of the Lifetime Learning Credit you can claim. Any limitation on the amount of the credit is determined through calculation of your modified adjusted gross income (AGI), calculated as part of completing your tax return. For more information on these levels, click here.
To claim the Lifetime Learning Credit, you must complete and submit Form 8863, "Education Credits (Hope and Lifetime Learning Credits)," with your tax return. For more information on how to calculate and claim the credit, see IRS Publication 970, "Tax Benefits for Education." Click here to access the publication.
