Are you or a member of your tax household pursuing higher education? If so, you may qualify to claim the Lifetime Learning Credit on your tax return!
What Is the LLC?
The Lifetime Learning Credit, or LLC, is a tax credit available for eligible students who are enrolled in an eligible educational institution. The LLC lets you claim 20% of the first $10,000 you pay for education-related costs. That means you can claim up to $2,000 per tax return to pay for tuition or related educational expenses.
Like other tax credits, the LLC works by reducing the amount of tax you owe. Unlike some credits, though, the LLC doesn’t roll over into a refund. This means if you owe $1,000 in taxes and you’re able to claim the full $2,000 credit, you’ll then owe $0 in taxes after claiming the credit, but you won’t get the remaining $1,000 from the LLC as a refund.
Who Can Claim the LLC?
To be eligible to claim the Lifetime Learning Credit, a student must meet certain criteria, including:
- Being enrolled or taking classes at an eligible educational institution
- Pursuing higher education to earn a degree or an otherwise recognized education credential, or to improve job skills
- Being enrolled for a minimum of one academic period that begins in the current tax year
Most institutions that offer higher education beyond high school are “eligible educational institutions.” If an institution qualifies to participate in the U.S. Department of Education student aid program, then it’s eligible for the LLC.
There’s no age restriction to the Lifetime Learning Credit, nor is there a limit on the number of years you can claim it. You can claim the LLC for anyone on your tax return, including yourself, your spouse, or your dependent(s).
Need More Info?
The LLC is a great tax credit, but there’s a lot to consider before you claim it. To make sure you meet all of the qualifications, and that the LLC is the best educational tax credit for you to claim in a given year, talk to the pros at Taxation Solutions, Inc. We’re here to help taxpayers in Charlotte navigate the ins and outs of the tax code so you can maximize your credits and reduce your tax liability. Call our team today to find out how we can be of assistance!