💰The Lifetime Learning credit can save you up to $2,000 on your taxes per tax return.
🎓The credit is available for those pursuing higher education and have eligible out-of-pocket expenses.
💵The credit is calculated as 20% of your qualified higher education expenses, up to $10,000.
📝You must file Form 8863 to claim the Lifetime Learning credit.
🧾The credit has income phase-outs, with the phase-out range depending on your filing status.
How much is the Lifetime Learning credit worth?
—The credit is worth up to $2,000 per tax return.
How is the credit calculated?
—The credit is calculated as 20% of your qualified higher education expenses, up to $10,000.
Who is eligible for the Lifetime Learning credit?
—Anyone with eligible out-of-pocket expenses for higher education can qualify.
What form do I need to file to claim the credit?
—You need to file Form 8863 to claim the Lifetime Learning credit.
Are there income limitations for the credit?
—Yes, there are income phase-outs for the credit, depending on your filing status.
00:00The video introduces the Lifetime Learning credit, a tax credit that can save you money on your taxes if you are pursuing higher education.
01:20The credit is available for those with eligible out-of-pocket expenses for higher education from an eligible institution.
02:56To qualify for the credit, you need to file Form 8863.
04:55The credit is calculated as 20% of your qualified higher education expenses, up to $10,000.
06:32The credit has income phase-outs based on your modified adjusted gross income.
