What Is the Lifetime Learning Credit?

The Lifetime Learning Credit gives you up to $2,000 per tax return (not per student) for tuition and fees paid to eligible educational institutions. Unlike the American Opportunity Credit, it's not limited to the first four years — you can use it for graduate school, professional courses, or adult learning. It's non-refundable and phases out at higher incomes. You claim it on Form 8863. You can't claim both the AOC and LLC for the same student in the same year.