What is the Lifetime Learning Tax Credit?
The Lifetime Learning Credit is eligible for student who enrolled in eligible educational institution. This credit can pay for Under graduate, graduate and professional degree courses. The taxpayer can get credit up to 20 percent of first $10,000 in tuition expenses per year tax return and maximum lifetime learning credit phase out limit up to $2,000.
Who Can Claim Lifetime Learning Tax Credit?
To claim LLC, the tax payer has to meet all three of the following.
· Taxpayer or Taxpayer dependent has qualified expenses for higher education.
· Taxpayer or Taxpayer dependent has eligible student enrolled at an eligible educational institution.
· The taxpayer and taxpayer dependent have eligible student, then taxpayer has to list them on tax return.
Who is an Eligible Student for LLC?
To eligible for Lifetime Learning Credit:
· The student has enrolled or taking courses at an eligible educational institution.
· The Student has been taking higher educational course or Course to get Degree or improve job skills.
· The student has to enrolled at least One academic period.
Taxpayers Income Limit for LLC:
The income limit to claim LLC, for individual taxpayer’s with MAGI cannot be exceed $66,000. For married filing jointly taxpayer to claim LLC the income should be less than $132,000. If individual taxpayer with adjusted gross income exceeds over $66,000 and joint filer exceed over $132,000 cannot claim the Lifetime Learning Credit.