Lifetime Learning Credit
Taken from IRS Pub 970 Chapter 4 Overview of Education Tax Benefits for Tax Year 2009
| Maximum credit | Up to $2,000 ($4,000 if a student in a Midwestern disaster area) credit per return | ||
| Limit on modified adjusted gross income (MAGI) | $120,000 if married filling jointly; $60,000 if single, head of household, or qualifying widow(er) |
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| Refundable or nonrefundable | Nonrefundable—credit limited to the amount of tax you must pay on your taxable income | ||
| Number of years of postsecondary education | Available for all years of postsecondary education and for courses to acquire or improve job skills | ||
| Number of tax years credit available | Available for an unlimited number of years | ||
| Type of degree required | Student does not need to be pursuing a degree or other recognized education credential | ||
| Number of courses | Available for one or more courses | ||
| Felony drug conviction | Felony drug convictions are permitted | ||
| Qualified expenses | Tuition and fees required for enrollment (including amounts required to be paid to the institution for course-related books, supplies, and equipment). Additional expenses allowed for students in Midwestern disaster areas. | ||
| Payments for academic periods | Payments made in 2009 for academic periods beginning in 2009 and in the first 3 months of 2010 |
Who Can Claim the Credit
Generally, you can claim the lifetime learning credit if all three of the following requirements are met.
- You pay qualified education expenses of higher education.
- You pay the education expenses for an eligible student.
- The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.
