Lifetime learning credit how does it work

United States. United Kingdom. Kat Tretina, Mike Cetera. Contributor, Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.

Compare Rates Now. Was this article helpful? Share your feedback. Send feedback to the editorial team. Rate this Article. Thank You for your feedback! Something went wrong. Please try again later. Best Of. Student Loan Basics. What Is Cost Of Attendance?

Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Part of. Table of Contents Expand. Table of Contents. Eligible Educational Institutions. Qualified Expenses. Who Can Claim the Education Credits? Income Limitations. American Opportunity Tax Credit. Claiming the Lifetime Learning Credit. He has written hundreds of articles covering topics including filing taxes, solving tax issues, tax credits and deductions, tax planning, and taxable income.

He previously worked for the IRS and holds an enrolled agent certification. Academic periods are determined by the school. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period. This statement helps you figure your credit. The form will have an amount in box 1 to show the amounts received during the year. But this amount may not be the amount you can claim. See qualified education expenses for more information on what amount to claim.

The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. You can't claim the lifetime learning credit if you claim either the American Opportunity Credit of the Tuition and Fees Deduction. Student activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid for enrollment or attendance.

The lifetime learning credit is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Generally, the credit is allowed for qualified education expenses paid in for an academic period beginning in or in the first 3 months of