How To Get The Most Out Of The Lifetime Learning Credit
(DailyDig.com) – The Lifetime Learning Credit or LLC is a tax benefit provided to low and middle-income students. It helps eligible students to pay for their undergraduate, graduate, and professional degrees courses or courses they take to improve their job skills. You can claim this credit for as long as you want to maintain its $2,000 tax return.
Please note that the Lifetime Learning Credit is non-refundable, meaning that it only reduces the beneficiaries’ liability to zero, and no part of the tax credit is refundable. However, it comes with an income limitation for the tax credit.
Qualification of the Lifetime Learning Credit
To be eligible for the Lifetime Learning Credit, a student must meet the following requirements:
- Enrolled or taking a course at a certified or eligible educational institution
- Taking a higher education course, degree, a recognized education credential, or learning to improve their job skills.
- You were enrolled for at least one academic session that begins in a tax year. An academic period can be a semester, quarter, trimester, or study period such as summer school sessions. Specific education institutions determine their academic periods. If a school uses credit hours or a clock and doesn’t have an academic term, the payment period determines its academic period.
How to Claim a Lifetime Learning Credit
Eligible students should have a Form 1098-T Tuition Statement from the eligible educational institution, domestic or foreign. In most cases, schools issue the Form 1098-T by January 31. This statement helps students figure out their credit. The form indicates the amount you received inbox one during the previous academic year, but this is not the amount you have to claim.
Once you’ve confirmed that the form is correct, complete Form 8863 and attach the completed form to Form 1040 or Form 1040-SR to claim your lifetime learning credit.
Copyright 2022, DailyDig.com