LLC (Lifetime Learning Credit)
A non-refundable tax credit of up to $2,000 per tax return for qualified tuition and education expenses.
The Lifetime Learning Credit (LLC) provides up to $2,000 per tax return (not per student) for qualified tuition and related expenses. It equals 20% of the first $10,000 in qualified expenses. Unlike the AOTC, there is no limit on the number of years you can claim it, and the student does not need to be pursuing a degree or be enrolled half-time. The credit is non-refundable. It phases out for single filers with MAGI between $80,000 and $90,000 ($160,000 to $180,000 for married filing jointly). Married filing separately filers have a lower phase-out range of $40,000 to $50,000.
Related Terms
Education Credits
Tax credits for higher education expenses. The American Opportunity Credit is worth up to $2,500 per student for the first four years; the Lifetime Learning Credit is up to $2,000 per return.
AOTC (American Opportunity Tax Credit)
A tax credit of up to $2,500 per eligible student for qualified education expenses during the first four years of post-secondary education.
Adjusted Gross Income (AGI)
Your gross income minus specific adjustments such as student loan interest, IRA contributions, and self-employment tax. AGI is the starting point for calculating your taxable income.
Filing Status
Your tax classification based on marital and family situation — Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Surviving Spouse.