For those unaware, the Lifetime Learning Credit allows all qualified taxpayers to start claiming their annual tax credit- which can go up to a certain amount in order to help them pay for the education expenses for themselves, their spouses, or their children. It is reported that a taxpayer has the power to claim this credit annually for an endless number of years.
This tax credit can further be utilized to offset the costs that have forever been associated with higher education, which include fees, tuition, books, supplies, and other paraphernalia that is required to receive a degree. This credit can also be used to assist students in gaining or enhancing their work skills. When one file for the tax return- this sum would be subtracted from the total amount of federal taxes that one would have to pay.
The Lifetime Learning Credit Payment Can Be Received Annually
In order to be eligible for the Lifetime Learning Credit, a student must be enrolled in any approved educational institution, or should at least be pursuing a degree or some form of a recognized educational certification- or should at least be enrolled under one academic term that would start in the tax year in order to find themselves eligible for this payment. According to the IRS, the academic period could be trimesters, semesters, quarters, or just about any other period of study- akin to a summer school session.
The IRS has further mentioned that the Lifetime Learning Credit also entitles all of the qualified taxpayers to a sum of $2,000 per year in taxes. This means that the credit has a worth of around $2,000 per return or 20% of the first $10,000 in all the eligible educational costs. There is absolutely no reimbursement for the LLC which means that even though one could use the credit to pay whichever taxes one owes- they will not receive any of it as refund.