Unlike the American Opportunity Credit, the Lifetime Learning Credit has no limit on years claimed and covers graduate and skill-building courses too.
How it works
20% of the first $10,000 in qualified expenses gives the credit before phase-out. Below the MAGI phase-out floor, the full credit applies; within the range, it reduces proportionally; above the ceiling, no credit is allowed.
What this does not include
This credit is non-refundable and capped at $2,000 total per tax return (not per student) — a family with multiple students in school simultaneously may find the American Opportunity Credit more valuable per student if eligible.
How to use this calculator
- Enter your filing status, qualified education expenses, and MAGI.
Frequently asked questions
How is this different from the American Opportunity Credit?
The AOTC is worth more per student (up to $2,500), partly refundable, but limited to the first four years of post-secondary education; the LLC has no year limit and covers a broader range of courses, but is smaller and non-refundable.
Can I claim both credits in the same year?
Not for the same student — but a family with multiple students could potentially claim AOTC for one and LLC for another in the same year.
Why haven’t the phase-out thresholds increased with inflation?
Unlike many other tax provisions, the LLC’s MAGI phase-out range was set at a fixed dollar amount by law and hasn’t been indexed for inflation since 2020, unlike the AOTC’s thresholds.
