The 2024 lifetime learning credit is currently open. If you apply to receive it, you can get up to $2,000 in credit, which should help you take care of your academic needs and any expenses that might arise.
What is the lifetime learning credit, and how much is it?
The lifetime learning credit (LLC) is used to cover learning expenses, mostly tuition fees, at a qualified institution of learning. You can receive an LLC as long as you’re an undergraduate or are currently in graduate school beyond the first four years. The lifetime learning credit helps you to upskill by providing funds that support a professional course you take, which will lead to skill development.
If you qualify to receive the LLC, you will receive $2,000 or 20% of the $10,000 of the eligible expenses per tax return. Also, the income limit for the LLC has been expanded by the IRS, further making it an attractive option that can help you move towards achieving your academic and professional goals at a reduced cost.
What are the requirements to receive the LLC?
If you are looking forward to applying to receive the LLC, then you must meet the following compulsory requirements:
- You, a dependent, or a third party must have met the qualified education expenses, a dependent.
- You, a dependent, or a third party must have paid the education expenses of an eligible student who is enrolled in an eligible institution.
- The eligible student in question must be either you, your spouse, or the dependent that you have listed on your tax return application.
Who is eligible to receive the LLC?
The LLC is not open to receiving by everyone, as there are criteria that ensure you are eligible to receive the credit. Some of these criteria include the following:
- As a student, you must be enrolled in an eligible educational institution.
- You must also be enrolled in one academic period in the tax year for the credit.
- Finally, you can also apply for the credit if you are taking a course to get a degree or a course that will help you improve your career skills.
How can you claim the credit?
If you have been able to ascertain that you can receive the credit, then you can go ahead and claim it by taking these steps.
- You must file a federal tax return.
- In addition, you must have completed Form 8863, Education Credits.
- Once done, attach the completed form to either your Form 1040 or the Form 1040A.
Once you have done this, you can claim the credit and get paid the funds, which will help you sort out some of your fares and help you on the journey to upskilling in your career.
One key point is that the above information is for 2024.
