The Lifetime Learning Credit is a tax credit for any person who takes college classes. It provides a tax credit of 20% of tuition expenses, with a maximum of $2,000 in tax credits on the first $10,000 of college tuition expenses. You can claim the Lifetime Learning Credit on your tax return if you, your spouse, or your dependents are enrolled at an eligible educational institution and you were responsible for paying college expenses. You need not be in the first four years of undergraduate classes unlike the American Opportunity Credit. You may take advantage of the Lifetime Learning Credit even in case you took just one class. All accredited colleges and universities are eligible educational institutions. Vocational schools and other post-secondary institutions are also eligible in addition to this. Basically you may use tuition paid to the school for claiming the Lifetime Learning tax credit in case the institution is eligible to participate in federal student and programs through the US Department of Education. Qualifying expenses include amounts paid for tuition and any required fees (such as registration and student body fees). Qualifying expenses do not include any of the following: books, supplies, equipment, room and board, insurance, student health fees, transportation, or living expenses.

Lifetime learning tax credit

You must be responsible for paying the college fees and tuition. When figuring your tax credit by the amount of financial assistance received from grants, scholarships, or reimbursements from your employer, you also need reduce your qualifying expenses. In case, however, you paid for college tuition using borrowed funds, including student loans, or by using gifts from family members, you do not need to reduce your qualifying expenses. You can claim the education credits on your tax return in case your son or daughter is going to college and you claim him or her as a dependent. He or she should claim any education credits on his or her own tax return if your son or daughter is no longer a dependent. If you pay the college expenses for someone who is not your dependent, you cannot claim any the tax credit. The amount of the Lifetime Learning Credit is limited over a phase-out range. Your tax credit is reduced in case your modified adjusted gross income is below the phase-out. Your tax credit will be reduced in case your income is in the middle of the phase-out range. The tuition and fees tax deduction expired at the end of 2013. This deduction, which could possibly be renewed by Congress, was similar to the Lifetime Learning Credit in that both tax breaks were available to any student taking college classes or other post-secondary education, regardless of whether they were studying full or part-time. he American Opportunity Credit, by contrast, is available only for the first four years of post-secondary education. Also, the American Opportunity Credit is phased out for people with modified adjusted gross income from $80,000 to $90,000 (unmarried people) or $160,000 to $180,000 (for married couples filing jointly) for the year 2014.