{"id":6772,"date":"2023-02-22T17:56:50","date_gmt":"2023-02-22T17:56:50","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=6772"},"modified":"2023-02-23T02:34:39","modified_gmt":"2023-02-23T02:34:39","slug":"lifetime-learning-credit","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/","title":{"rendered":"Quick Lifetime Learning Credit Calculator 2022"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-1024x576.webp 1024w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-300x169.webp 300w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-768x432.webp 768w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-1536x864.webp 1536w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-150x84.webp 150w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-750x422.webp 750w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-1140x641.webp 1140w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit.webp 1920w\" sizes=\"(max-width: 1121px) 100vw, 1121px\" type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-1024x576.png\" height=\"631\" width=\"1121\" srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-1024x576.png 1024w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-300x169.png 300w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-768x432.png 768w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-1536x864.png 1536w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-150x84.png 150w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-750x422.png 750w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit-1140x641.png 1140w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/02\/lifetime-learning-credit.png 1920w\" sizes=\"(max-width: 1121px) 100vw, 1121px\" class=\"wp-image-6774 sp-no-webp\" alt=\"lifetime learning credit\" decoding=\"async\" loading=\"lazy\"  > <\/picture><\/figure>\n\n\n\n<p>The Lifetime Learning Credit is a valuable <strong><em>education tax credit<\/em><\/strong> that can provide financial assistance to individuals and families pursuing higher education or job skills training. Higher education is costly in the USA. Therefore, it is challenging for many individuals and families to aflford higher education. The <em>Lifetime Learning tax Credit <\/em>is a tax credit that provides financial assistance to students and working professionals enrolled in post-secondary education programs that do not lead to a degree. This credit can be used for undergraduate, graduate, and professional degree courses and courses taken to improve job skills. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6629bc19afc37\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6629bc19afc37\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/#Lifetime_learning_credit_calculator_2022_2023\" title=\"Lifetime learning credit calculator 2022 &amp; 2023\">Lifetime learning credit calculator 2022 &amp; 2023<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/#What_is_the_eligibility_for_lifetime_learning_credit\" title=\"What is the eligibility for lifetime learning credit?\">What is the eligibility for lifetime learning credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/#Lifetime_learning_credit_income_limit_for_2022_2023\" title=\"Lifetime learning credit income limit for 2022 &amp; 2023\">Lifetime learning credit income limit for 2022 &amp; 2023<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/#What_are_lifetime_learning_credit_qualified_expenses\" title=\"What are lifetime learning credit qualified expenses?\">What are lifetime learning credit qualified expenses?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/#Is_lifetime_learning_credit_refundable\" title=\"Is lifetime learning credit refundable?\">Is lifetime learning credit refundable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/#How_to_calculate_Lifetime_Learning_Tax_Credit\" title=\"How to calculate Lifetime Learning Tax Credit?\">How to calculate Lifetime Learning Tax Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/#How_does_lifetime_learning_credit_phase_out_work\" title=\"How does lifetime learning credit phase out work?\">How does lifetime learning credit phase out work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.irstaxapp.com\/lifetime-learning-credit\/#Lifetime_Learning_Credit_vs_American_Opportunity_Tax_Credit\" title=\"Lifetime Learning Credit vs American Opportunity Tax Credit\">Lifetime Learning Credit vs American Opportunity Tax Credit<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lifetime_learning_credit_calculator_2022_2023\"><\/span>Lifetime learning credit calculator 2022 &amp; 2023<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-black-color has-text-color has-background has-medium-font-size\" style=\"background-color:#fafdec\">Please note that phaseouts threshold  for the American Opportunity Tax Credit and <em>Lifetime Learning Tax Credit<\/em> for tax year 2023 (filing April 2024 ) are same as that of year 2022 .Therefore , the aforesaid calculator will work for both tax year 20not adjusted for inflation. Refer <a href=\"https:\/\/www.irs.gov\/newsroom\/irs-provides-tax-inflation-adjustments-for-tax-year-2023\" target=\"_blank\" rel=\"noopener\">IRS News<\/a><\/p>\n\n\n\n<iframe loading=\"lazy\" width=\"100%\" height=\"700\" layout=\"responsive\" sandbox=\"allow-scripts allow-same-origin\" src=\"https:\/\/gsheetpress.com\/calculator?id=1677087818989\" <=\"\" iframe=\"\"><\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_eligibility_for_lifetime_learning_credit\"><\/span>What is the eligibility for lifetime learning credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To be eligible, the taxpayer must have paid <strong><em>qualified education expenses<\/em><\/strong> for themselves, their spouse, or a dependent. <\/p>\n\n\n\n<p>The following are the conditions of eligibility for the Lifetime Learning Credit:<\/p>\n\n\n\n<ol><li>The taxpayer <em>must be enrolled in an eligible educational institution.<\/em> This can be a college, university, vocational school, or other post-secondary educational institution eligible to participate in the federal student aid program.<\/li><li>The taxpayer must <strong>pay qualified education expenses<\/strong> related to the course of study. These include tuition, fees, books, supplies, and other required course materials.<\/li><li>The taxpayer cannot claim the Lifetime Learning Credit for expenses paid using tax-free educational assistance, such as employer-provided educational assistance or scholarships.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lifetime_learning_credit_income_limit_for_2022_2023\"><\/span>Lifetime learning credit income limit for 2022 &amp; 2023<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The taxpayer&#8217;s <strong>modified adjusted gross income<\/strong> (MAGI) must be below $90,000 for single and $180,000 for married couples because even though the taxpayer having those incomes may be eligible, the rule of phasing out ultimately diminishes the tax credit. For the tax year 2022, the credit begins to phase out for taxpayers with a MAGI of $80,000 for individuals and $160,000 for married couples filing jointly. So, the lifetime learning credit income limit for 2022 for singles is $90,000, and for <strong>family is $ 180,000.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_lifetime_learning_credit_qualified_expenses\"><\/span>What are lifetime learning credit qualified expenses?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any expense you can prove for pursuing undergraduate, graduate, and professional degree courses and courses taken to improve job skills, including tuition, fees, and required course materials. The following are some examples of qualified expenses that can be used to claim the <strong><em>Lifetime Learning Tax Credit<\/em><\/strong>:<\/p>\n\n\n\n<ol><li>The lifetime learning tax credit can be claimed for <strong><em>tuition and fees paid to the educational institution<\/em><\/strong> where the taxpayer is enrolled.<\/li><li>The cost of books, supplies, and equipment required for the course of study can also be claimed as qualified expenses.<\/li><li>The cost of special materials or software required for the course of study can also be claimed as qualified expenses.<\/li><li>The enrollment fees paid for the course of study are also considered qualified expenses for the Lifetime Learning Credit.<\/li><li>Fees paid for student activities related to the course of study can also be claimed as qualified expenses.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_lifetime_learning_credit_refundable\"><\/span>Is lifetime learning credit refundable?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The lifetime learning tax credit is not a <a href=\"https:\/\/www.irstaxapp.com\/refundable-tax-credits-2022-2023\/\">refundable tax credit<\/a>. That means this <a href=\"https:\/\/www.irstaxapp.com\/premium-tax-credits-eligibility-limits\/\">tax credit <\/a>can offset the current tax liability if you have tax liability during the year. But if there is some balance, it will not generate any refund or be carried forward to next year.<\/p>\n\n\n\n<p>For example, let&#8217;s say that a taxpayer has a tax liability of $1,000 for the year and is eligible for a Lifetime Learning Credit of $2,000. The taxpayer can use the full $1,000 credit to reduce their tax liability to zero. However, the remaining $1,000 of the credit cannot be refunded to the taxpayer or carried forward to future tax years. The excess credit is simply forfeited.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_calculate_Lifetime_Learning_Tax_Credit\"><\/span>How to calculate Lifetime Learning Tax Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IRS provides <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f8863.pdf\" target=\"_blank\" rel=\"noopener\">Form 8863 Education Credit<\/a> to calculate the amount of Lifetime Learning Credit. The form requires the taxpayer to provide information about the student, the educational institution, and the qualified education expenses. The taxpayer must also provide their MAGI to determine if the credit is phased out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_lifetime_learning_credit_phase_out_work\"><\/span>How does lifetime learning credit phase out work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>maximum Lifetime Learning Tax Credit <\/strong>allowed  per year is <strong>$2,000, based on $10,000 in qualifying expenses<\/strong>.The phaseout of tax credits means the credit gradually reduces as the taxpayer&#8217;s income increases. This ensures that the tax benefits are targeted toward individuals who need them the most. In the case of the <em>Lifetime Learning Tax Credit<\/em>, the credit begins to phase out for individuals with a MAGI of $59,000 and married couples filing jointly with a MAGI of $118,000. The credit is completely phased out for individuals with a MAGI of $69,000 and married couples filing jointly with a MAGI of $138,000.<\/p>\n\n\n\n<p>To understand how the phaseout works, consider a taxpayer with a MAGI of $64,000 who paid $8,000 in qualified education expenses during the tax year. The taxpayer is eligible for the Lifetime Learning Credit, subject to phaseout. The credit is calculated as 20% of the first $10,000 in qualified education expenses, which is $2,000. However, because the taxpayer&#8217;s MAGI is within the phaseout range, the credit is reduced by 5% for every $1,000 over the MAGI limit. In this case, the taxpayer&#8217;s MAGI is $5,000 over the limit, reducing the credit by 25%. The taxpayer is eligible for a $1,500, calculated by reducing the maximum credit of $2,000 by 25%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lifetime_Learning_Credit_vs_American_Opportunity_Tax_Credit\"><\/span><strong>Lifetime Learning Credit<\/strong> vs <strong>American Opportunity Tax Credit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In conclusion, the Lifetime Learning Credit and the American Opportunity Credit are two tax credits offered by the U.S. government to help students offset the cost of higher education. While both credits have similar purposes, they differ in their eligibility requirements and the maximum amount that can be claimed. It is essential to understand these differences to determine which credit best suits your specific educational goals and circumstances.<\/p>\n\n\n\n<figure class=\"wp-block-table has-medium-font-size\"><table class=\"has-black-color has-text-color has-background\" style=\"background-color:#ffe6a3\"><tbody><tr><td><strong>Lifetime Learning Credit<\/strong><\/td><td><strong>American Opportunity Tax Credit<\/strong><\/td><\/tr><tr><td>The Lifetime Learning Credit is a tax credit that helps individuals enrolled in post-secondary education programs that do not lead to a degree. This credit can be used for undergraduate, graduate, and professional degree courses, and courses are taken to improve job skills.<\/td><td>American Opportunity Credit is a tax credit that helps students pursue a degree or other recognized educational credentials. To qualify for the American Opportunity Credit, the student must be enrolled at least half-time in a program that leads to a degree, certificate, or other recognized educational credential.<\/td><\/tr><tr><td>The credit is worth up to $2,000 per tax return and can be claimed for unlimited years as long as you qualify.<\/td><td>This credit is worth up to $2,500 per eligible student per year and can be claimed for up to four years of undergraduate study.<\/td><\/tr><tr><td><\/td><td><\/td><\/tr><tr><td><\/td><td><\/td><\/tr><tr><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Lifetime Learning Credit is a valuable education tax credit that can provide financial assistance to individuals and families pursuing higher education or job skills training. Higher education is costly in the USA. Therefore, it is challenging for many individuals and families to aflford higher education. The Lifetime Learning tax Credit is a tax credit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6774,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[27],"amp_enabled":false,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6772"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=6772"}],"version-history":[{"count":10,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6772\/revisions"}],"predecessor-version":[{"id":6789,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6772\/revisions\/6789"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/6774"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=6772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=6772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=6772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}