Education Funding
beginner · $0 - $50K
The LLC gives you a 20% credit on up to $10,000 in tuition and fees = $2,000 max.
No limit on years you can claim it.
Works for graduate school, professional development, and even single courses.
Annual Limit
$2,000 credit (not per student - per return)
Key takeaways
- A 20% credit on up to $10,000 of tuition and fees, for a maximum of $2,000 per tax return.
- No limit on the number of years you can claim it, and no degree or half-time requirement.
- Works for graduate school, single courses, professional development, and certifications.
- Nonrefundable, and phases out $80K-$90K single / $160K-$180K married; you cannot claim it and the AOTC for the same student.
Requirements
- Enrolled in eligible educational institution
- Taking courses to improve job skills (any level)
- MAGI under $90K single / $180K married (phase-out: $80K-$90K single / $160K-$180K married)
- Cannot also claim AOTC for same student
How to Implement
- 1Receive Form 1098-T from school
- 2Track tuition and required fees
- 3File Form 8863 with tax return
- 4Claim 20% of up to $10,000 in expenses
The bottom line
The Lifetime Learning Credit rewards almost any skill-building coursework at 20% up to $2,000, with no year limit. Its flexibility is the tradeoff for being smaller and nonrefundable.
Frequently Asked Questions
Related education funding strategies
Sources
- Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
- Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
- Internal Revenue Service, Rev. Proc. 2025-19
2026 HSA and HDHP inflation-adjusted limits
Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.