Explain Lifetime Learning Credit
What is lifetime learning credit?
Lifetime learning credit is another education tax credit that a taxpayer can claim. Lifetime learning credit is a nonrefundable education tax credit. The other education tax credit is Hope tax credit. Usually if a student cannot claim the Hope credit he or she will try to claim the lifetime learning credit.
What is the maximum lifetime learning credit? What is the Lifetime learning tax credit amount?
A lifetime learning crdit of up to $2,000 per tax return in 2007 can be claimed for the total qualified tuition and related expenses paid during the tax year for all eligible students enrolled in eligible educational institutions.
The lifetime learning credit is 20% of the first $10,000 the taxpayer pays for qualified tuition and related expenses for all eligible students. The full $2,000 can only be claimed for the 2007 lifetime learning credit if $10,000 or more is spent on qualified education expenses.
Claiming the lifetime learning credit explained
Unlike the Hope education credit:
the lifetime learning credit is not based on the student's workload. The lifetime learning credit is allowed on one or more courses
the lifetime learning credit is not limited to students in the first two years of postsecondary education. Expenses for graduate level degree work are eligible.
There is no limit on the number of years for which the lifetime learning credit can be claimed for each eligible student.
The amount claimed as a lifetime learning credit does not change based on the number of students for whom qualified expenses are paid.