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)
Tax Benefit
Up to $2,000 credit for any educational courses
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
Frequently Asked Questions
Educational Only: This information is for educational purposes. Consult a qualified financial advisor or tax professional before implementing.
Last reviewed: April 2026
Related education funding strategies
529 Education Savings PlanTax-free growth for education expenses, plus state tax deductions in many states.Student Loan Interest DeductionDeduct up to $2,500 in student loan interest - even without itemizing.American Opportunity Tax Credit (AOTC)Get up to $2,500/year credit for college costs - 40% is refundable.
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.