What is the 2023 Lifetime Learning Credit?
The Lifetime Learning Credit (LLC) is a tax credit that provides assistance with qualified tuition and related expenses for eligible students enrolled in eligible educational institutions.
This tax credit can be used to pay for undergraduate, graduate, and professional degree courses, as well as practices to acquire or improve job skills.
According to a published article in Marca, this makes it an excellent option for students who may be pursuing education over a longer period.
How much is the Lifetime Learning Credit and How to Qualify
For the tax year 2023, the Lifetime Learning Credit claim is worth up to $2,000 per tax return, which can significantly help those who are eligible.
To qualify for the Lifetime Learning Credit credit, three primary requirements must be met:
- qualified education expenses must be paid for higher education by you, your dependent, or a third party
- the education expenses must be paid for an eligible student enrolled at an eligible educational institution
- and the eligible student must be yourself, your spouse, or a dependent listed on your tax return
In addition to meeting these requirements, the eligible student must also be enrolled or taking courses at an eligible educational institution, taking higher education courses to get a degree or other recognized education credential or to get or improve job skills, and enrolled for at least one academic period beginning in the tax year.
According to the IRS, the Lifetime Learning Credit cannot be refunded, meaning that it can only be applied to offset any tax liability that you may have, and it cannot be received as a refund if the credit exceeds your tax liability.
Overall, the Lifetime Learning Credit is an excellent option for those pursuing higher education and seeking financial assistance. By taking advantage of this tax credit, students and their families can help to offset the rising costs of education and make the pursuit of knowledge more accessible to all.