Lifetime Learning Credit: The Most You Can Get As Credit For This Year

Lifetime Learning Credit

The Lifetime Learning Credit (LLTC) is a kind of tax credit. Taxpayers who qualify for it can claim a yearly tax credit to help with their own, their partner’s, and dependent children’s education expenses including college fees. An individual taxpayer is allowed to claim this Lifetime Learning Credit once every year for as many years as they want.

The Lifetime Learning Credit Can Solve Many Aspiring Students’ Problems

One of the uses of Lifetime Learning Credit can be to handle the costs of higher education. This includes supplies, books, fees, tuition, and equipment required for courses and degree programs that help students learn or better their work skills. Taxpayers can subtract the sum from the entire federal tax amount that is needed to be paid while filing their tax returns.

To qualify for it, the student has to be taking a course or enrolled at an educational institution that is approved for the Lifetime Learning Credit. Furthermore, they have to be pursuing some form of educational certification that is recognized under the LLTC. Or, they have to be an enrolled student for a minimum of 1 academic term that begins in the year for which the tax is being filed. According to the IRS, quarters, trimesters, semesters, or any study period like a session of the summer school are considered academic periods.

They further add that schools determine academic periods. As such, schools use credit or clock hours instead of academic terms, the period of payments can be considered as the academic period. As per the IRS, the Lifelong Learning Credit can give qualified taxpayers up to a maximum of $2000 annually. The LLC has no reimbursements so individuals cannot get any remaining amount as a refund.