Lifetime Learning Credit: Up to $2,000 for Education Expenses

The Lifetime Learning Credit reduces federal income tax based on qualified education expenses paid to eligible institutions. Unlike the American Opportunity Credit, it can be claimed for an unlimited number of years and does not require enrollment in a degree program.

Whether finishing a degree, advancing in graduate school, or taking night classes to build new job skills, the Lifetime Learning Credit can help lower your tax bill and make lifelong learning easier on your wallet.

What Is the Lifetime Learning Credit?

The Lifetime Learning Credit is a nonrefundable federal tax credit that lets you reduce the amount of tax you owe based on your qualified education expenses. Unlike a deduction, which simply lowers your taxable income, a tax credit directly cuts your tax liability — dollar for dollar.

The LLC is designed for flexibility. You can claim it for undergraduate courses, graduate programs, or even single classes taken to improve job skills. There’s no requirement to pursue a degree, and no cap on the number of years you can claim it.

It’s one of two major education credits available to students and families — the other being the American Opportunity Tax Credit (AOTC). While the AOTC is geared toward undergraduates in their first four years, the Lifetime Learning Credit helps everyone else — graduate students, professionals, and lifelong learners.

You’ll claim it using IRS Form 8863 and file it with your federal income tax return.

Common Situations Where the LLC Is Used

The Lifetime Learning Credit is often used by taxpayers who are continuing their education beyond traditional undergraduate programs. Common situations include:

• graduate degree programs, including master’s and doctoral coursework
• professional certification or licensing courses required for career advancement
• part-time continuing education classes taken while working

If you're in graduate school or balancing school with work, see our Graduate Student Taxes guide for more education credit and filing rules.

LLC Eligibility Requirements

To qualify for the Lifetime Learning Credit, you must meet several eligibility requirements:

• You (or your spouse or dependent) must attend an eligible educational institution, such as a college, university, or vocational school that participates in the federal student aid program.
• You must have qualified education expenses, such as tuition and required enrollment fees.
• You can qualify even if you’re enrolled in just one course. The IRS doesn’t require full-time or degree-seeking status for the Lifetime Learning Credit.
• The credit can be used for undergraduate, graduate, or professional degree programs or courses to improve job skills.
• You can’t claim the Lifetime Learning Credit if your filing status is Married Filing Separately.
• The student must be yourself, your spouse, or an eligible dependent.
• You cannot be claimed as a dependent on someone else’s tax return.

The best part? There’s no limit on the number of years you can claim the LLC. That means whether you’re earning a new degree in your 20s or taking certification classes in your 50s, this lifetime learning tax credit keeps rewarding your effort to learn.

Income Limits and Credit Amount

Your modified adjusted gross income (MAGI) determines whether you can claim the Lifetime Learning Credit—and how much you can receive.

For the 2026 tax year, the Lifetime Learning Credit begins to phase out when your MAGI exceeds $80,000 ($160,000 if married filing jointly) and is completely phased out at $90,000 ($180,000 for joint filers).

Here’s how the math works:

• You can claim 20% of the first $10,000 in qualified education expenses, up to $2,000 per return.
• That means the maximum credit is $2,000 per return—not per student.

Because the LLC is nonrefundable, it can reduce your total tax bill to zero, but it won’t generate a tax refund.

Source: IRS Pub. 970, Table 3-1

What Counts as Qualified Education Expenses?

The IRS defines qualified education expenses as the costs you pay for tuition and required enrollment fees at an eligible institution. These can include:

• Tuition and fees paid to your college or vocational school.
• Books, supplies, and equipment qualify only if the payment is made directly to the institution as a condition of enrollment or attendance.

Expenses must apply to an academic period beginning during the tax year or in the first three months of the next tax year.

The following don’t qualify:

• Room and board
• Insurance
• Transportation
• Medical expenses
• Optional equipment or fees

Always keep receipts and Form 1098-T, which your school provides each year, showing qualified tuition and fees paid.

Source: IRS Pub. 970, Chapter 3, Qualified Education Expenses

How to Claim the Lifetime Learning Credit

To claim the Lifetime Learning Credit, complete IRS Form 8863 and attach it to your federal income tax return. Keep your Form 1098-T and other tuition records in case the IRS requests documentation. See Filing Taxes as a Student for full filing guidance.

Lifetime Learning Credit vs. American Opportunity Tax Credit

Many students qualify for both the Lifetime Learning Credit and the American Opportunity Tax Credit. Here’s how to decide which one provides greater tax savings.

Download the AOTC vs LLC Comparison Chart (PDF) to see which education credit gives you the best tax benefits this year.

When the Lifetime Learning Credit Matters Most

The Lifetime Learning Credit can provide meaningful tax relief for taxpayers who pay qualified education expenses for eligible courses. It is especially relevant for graduate students, part-time learners, and workers taking classes to maintain or improve job skills.

Because the credit is nonrefundable, its value depends on your tax liability for the year. Reviewing your qualified expenses, filing status, and income before claiming the credit can help you determine whether it applies.

If you may also qualify for other education benefits, compare your options before filing to avoid claiming the same expenses twice.