Demystifying Form 8863: Lifetime Learning Tax Credit

📚The lifetime learning tax credit is an option for students who have already claimed the American Opportunity tax credit.

💰The lifetime learning tax credit is non-refundable, meaning it can only be used to offset tax liability.

📝Form 8863 is used to report the lifetime learning tax credit on your tax return.

💡The lifetime learning tax credit is calculated as 20% of eligible education expenses, up to a maximum of $2,000 per return.

⏰There is no time limit for claiming the lifetime learning tax credit, unlike the American Opportunity tax credit which is limited to the first four years of post-secondary education.

Can I claim the lifetime learning tax credit if I have already claimed the American Opportunity tax credit?

—Yes, the lifetime learning tax credit is available for students who have already claimed the American Opportunity tax credit and are still taking classes.

Is the lifetime learning tax credit refundable?

—No, the lifetime learning tax credit is non-refundable, meaning it can only be used to offset tax liability. Any excess credit cannot be refunded.

What form do I use to claim the lifetime learning tax credit?

—You should use Form 8863 to report the lifetime learning tax credit on your tax return.

How is the lifetime learning tax credit calculated?

—The lifetime learning tax credit is calculated as 20% of eligible education expenses, up to a maximum of $2,000 per return.

Is there a time limit for claiming the lifetime learning tax credit?

—No, there is no time limit for claiming the lifetime learning tax credit. It can be claimed for an unlimited number of years.

00:01In this video, we demystify Form 8863 and learn about the lifetime learning tax credit.

02:03The lifetime learning tax credit is available for students who have already claimed the American Opportunity tax credit.

02:56The lifetime learning tax credit is non-refundable, meaning it can only be used to offset tax liability.

03:40Form 8863 is used to report the lifetime learning tax credit on your tax return.

04:25The lifetime learning tax credit is calculated as 20% of eligible education expenses, up to a maximum of $2,000 per return.

05:24There is no time limit for claiming the lifetime learning tax credit, unlike the American Opportunity tax credit.