Lifetime Learning Tax Credit

You may be able to claim a tax credit for semesters beginning after 06/30/98. Payments made after 06/30/98 may be eligible for this credit.

There is no restriction on the amount of postsecondary education that needs to be completed.

Through 2002, the credit is equal to 20% of the taxpayer's first $5,000 of out-of-pocket qualified tuition and related expenses for all students in the family. After 2002, the credit is equal to 20% of the taxpayer's first $10,000 of out-of-pocket qualified tuition and related expenses. This credit does not apply to each individual student; it applies for the family as a whole.

The amount a taxpayer may claim as a Lifetime Learning Credit is gradually reduced for taxpayers with modified adjusted gross income between $40,000 and $50,000 (between $80,000 and $100,000 for married taxpayers filing jointly). Taxpayers with modified adjusted gross income over $50,000 ($100,000 for married taxpayers filing jointly) may not claim a Lifetime Learning Credit. If the taxpayer is claiming a Hope Scholarship Credit for a particular student, none of that student's expenses for that year may be applied toward the Lifetime Learning Credit.