Lifetime Learning Credit in 2014

Lifetime Learning Credit in 2014

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 $2000 in tax credits on the first $10,000 of college tuition expenses. It applies to undergraduate and graduate classes. You don’t have to be the student to take the write-off, just the one paying the bill. You can claim the lifetime Learning Credit if you, your spouse, or your dependents are enrolled at an eligible educational institution, and you were responsible for paying college expenses. However, the deduction “phases-out” at certain income levels. In 2013, the amount of this credit is gradually reduced if your modified adjusted gross income is between $53,000 and at $63,000 is phased-out, if single; and $107,000 and at $127,000 is phased-out– if you are married and file a joint return.

I would recommend that you obtain IRS Publication 970 for further information.