Lifetime Learning Credit

The lifetime learning credit (LLC) is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degree courses — including courses to acquire or improve job skills. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return.

Who can claim the LLC?

To claim the LLC, you must meet all three of the following:

1. You, your dependent or a third party pay qualified education expenses for higher education.
2. You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution.
3. The eligible student is yourself, your spouse or a dependent you listed on your tax return.

See "Who Cannot Claim an Education Credit" on our Education Credits — AOTC and LLC page.

Interactive education credit app

Use our interactive app, Am I Eligible to Claim an Education Credit?, to find out if you can claim an education credit.

Who is an eligible student for LLC?

To be eligible for LLC, the student must:

• Be enrolled or taking courses at an eligible educational institution.
• Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills.
• Be enrolled for at least one academic period beginning in the tax year.
  
  Academic Period can be semesters, trimesters, quarters or any other period of study such as a summer school session. Academic periods are determined by the school. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period.

Important differences between LLC and AOTC

There are important differences between the LLC and AOTC. See our chart to Compare the LLC and AOTC.

What are the income limits for LLC?

• For tax year 2023, the amount of your LLC is gradually reduced (phased out) if your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return).
• You can’t claim the credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return).

Claiming the credit

To be eligible to claim the AOTC or LLC, the law requires a taxpayer (or a dependent) to have received Form 1098-T, Tuition Statement PDF, from an eligible educational institution, whether domestic or foreign.

If you received a Form 1098-T, this statement will help you figure your credit. The form will have an amount in box 1 to show the amounts received during the year. But this amount may not be the amount you can claim. See qualified education expenses in Publication 970 PDF, Tax Benefits for Education, for more information on what amount to claim.
Check the Form 1098-T to make sure it is correct. If it isn’t correct or you do not receive the form, contact your school.

If you did not receive a Form 1098-T, you may still be eligible to claim a credit because the student's educational institution isn't required to furnish Form 1098-T to the student under existing rules, for example if the student:

• is a qualified nonresident alien,
• has qualified education expenses paid entirely with scholarships,
• has qualified education expenses paid under a formal billing arrangement, or
•  is enrolled in courses for which no academic credit is awarded.

 If a student's educational institution isn't required to provide Form 1098-T to the student, you may claim a credit without Form 1098-T if you otherwise qualify by showing that you (or a dependent) were enrolled at an eligible educational institution and can substantiate the payment of the qualified tuition and related expenses.

Check the Form 1098-T to make sure it is correct. If it isn't correct or you do not receive the form, contact your school.

To claim the LLC, you must complete the Form 8863 PDF. Attach the completed form to your Form 1040 or Form 1040-SR.

What is the LLC worth?

The amount of the credit is 20 percent of the first $10,000 of qualified education expenses or a maximum of $2,000 per return. The LLC is not refundable. So, you can use the credit to pay any tax you owe but you won’t receive any of the credit back as a refund.

Return to Education Credits