What Is the Lifetime Learning Credit?

The Lifetime Learning Credit (LLC) is a federal tax credit worth up to $2,000 per tax return (not per student) for qualified tuition and fees paid for higher education courses. The credit is 20% of up to $10,000 in qualified expenses per return. Unlike the American Opportunity Tax Credit, the Lifetime Learning Credit has no limit on the number of years it can be claimed — you can use it for graduate school, professional degree programs, a single class to improve your skills, or any other college-level coursework at an eligible institution. The credit phases out for single filers with MAGI between $80,000 and $90,000 and for married couples between $160,000 and $180,000. Because the credit is per return rather than per student, a family with multiple college students won't get more than $2,000 per year — another reason families with multiple enrolled students might prefer the AOTC. The Lifetime Learning Credit is not refundable, so it can only reduce your tax bill to zero.