The LIFETIME LEARNING CREDIT may be available to taxpayers who pay higher education costs but are not elibigle to claim the American Opportunity Credit. The credit is equal to 20% of the first $10,000 of tuition and required fees paid each year (for all students in the family) with a maximum credit of $2,000.
- The maximum credit is determined on a per-taxpayer (family) basis, and the full amount of the credit is subject to certain income limitations.
Both the LIFETIME LEARNING CREDIT and the American Opportunity Credit are claimed using IRS Form 8863. You may not claim both credits for the same student for the same tax year.
For complete information, please refer to Chapter 3 of Pub. 970 – Tax Benefits for Education and the IRS Instructions for Form 8863.
The above information is not provided as legal or tax advice. Individuals should consult with a qualified tax professional, and/or contact the IRS Taxpayer Assistance line at 1-800-829-1040 with regards to any credit or deduction claimed on a personal tax return.