Do you Qualify for a Lifetime Learning Credit?

The Lifetime Learning Credit is a nonrefundable tax credit of up to $2,000 for higher education expenses for students that are not eligible to claim the American Opportunity Credit.
This video goes into how you determine you are eligible for the credit, and how the credit is calculated and reported.
2024 UPDATE:
As a result of the elimination of the Tuition and Fees Deduction, the AGI phaseout amounts to claim the Lifetime Learning Credit have been substantially increased.
S/HOH: $80,000 - $90,000. MFJ: $160,000 - $180,000
You may want to watch the video on the American Opportunity Credit first, since many aspects of the Lifetime Learning Credit are similar.
You can do that by clicking here: • The American Opportuni...
Information and Resources:
IRS Publication 970: "Tax Benefits for Education": www.irs.gov/pu...
IRS Form 1098-T: "Tuition Statement": www.irs.gov/pu...
IRS Form 8863: "Education Credits": www.irs.gov/pu...
Intro and background music: “Bluesy Vibes” - Doug Maxwell - KZbin Audio Library
DISCLAIMER:
The information presented in this video is for informational and educational purposes only, and is not intended to render tax advice for specific situations. If you have questions about your specific tax situation, please consult the resources linked above or consult with a qualified tax professional in your community.
The information contained in this video is based on tax law and IRS regulations as of the date of publication, and may be subject to change.

[@TheTaxGeek]

2024 UPDATE: As a result of the elimination of the Tuition and Fees Deduction, the AGI threshold amounts to claim the Lifetime Learning Credit have been substantially increased. They are now equivalent to those of the American Opportunity Credit: S/HOH: $80,000 - $90,000. MFJ: $160,000 - $180,000

[@jenniferf3034]

I am not sure if the "having to buy from the educational institution" still applies. Just finished reading the IRS guidelines and there is no mention of that rule...

[@TheTaxGeek]

According to IRS, Publication 970 "Tax Benefits for Education," page 24, on the Lifetime Learning Credit: "Student activity fees and expenses for course-related books, supplies, and equipment are included in qualified educational expenses only if the fees and expenses must be paid to the institution for enrollment or attendance."

[@soccerchamp81]

If I am paying my tuition with my student loans, does this mean I would receive a credit?

[@TheTaxGeek]

Yes, you get the credit if you pay with your own funds or proceeds from loans.

[@soccerchamp81]

@@TheTaxGeek but I don’t have an income right now to owe any tax-I am a full time student and this is a nonrefundable credit. So does this still apply to me?

[@MarlonAlburez]

Love these Videos

[@TheTaxGeek]

Thanks!

[@omniteksilbear4559]

Can you claim credit if your on Vacation disability, with no other income?

[@TheTaxGeek]

You can only claim a Lifetime Learning Credit if you have a tax liability, i.e. your taxable income exceeds your standard or itemized deductions. Unless your disability income is taxable, and you have no other income, you would have no taxable income and therefore no tax liability, and would not be eligible for the credit. However, if you would otherwise qualify for the American Opportunity Credit, you can claim the refundable portion of that, up to $1,000, even if you have no taxable income or tax liability.

[@omniteksilbear4559]

@@TheTaxGeek Thank you. I should have asked you first before I went to H R blockhead they said I saw couldn't get anything:/

[@zsuschukytos4219]

Hello, i am a single graduate filer who makes 35,000$ a year and paid 7500$ tuition am i eligible for this credit? If so, how much will i be getting?

[@TheTaxGeek]

Yes, your credit would be about $1,500.

[@zsuschukytos4219]

@@TheTaxGeek thank you so much for your help 😊