How Many Times Can You Claim the Lifetime Learning Credit?

Claiming the Credit Annually

The Lifetime Learning Credit (LLC) is an annual federal tax credit designed to help taxpayers manage qualified education expenses. This credit supports individuals pursuing undergraduate, graduate, or professional degree courses, as well as those taking courses to acquire job skills. It helps make education more accessible.

The Lifetime Learning Credit is an annual tax credit, which means taxpayers can claim it each year they meet the specific eligibility requirements. There is no set limit on the number of years this credit can be claimed over a lifetime. This allows continuous support for ongoing educational endeavors, provided the annual criteria are satisfied.

To claim the credit, taxpayers must incur qualified education expenses, which generally include tuition and fees paid to an eligible educational institution. These expenses can also encompass required course-related books, supplies, and equipment that students must purchase directly from the institution as a condition of enrollment or attendance. The maximum credit is $2,000 per tax return, calculated as 20% of the first $10,000 in qualified education expenses. The Lifetime Learning Credit is nonrefundable, meaning it can reduce a taxpayer’s liability to $0, but it will not result in a refund if the credit amount exceeds the tax owed.

Annual Student and Course Requirements

For a taxpayer to claim the Lifetime Learning Credit, specific criteria must be met each year by both the student and the courses taken. The student must be enrolled in an eligible educational institution. Enrollment must be for at least one academic period beginning in the tax year for which the credit is claimed.

The courses taken by the student must be part of a program leading to a college degree, or they must be taken to acquire job skills. The student does not need to be pursuing a degree to qualify. This flexibility allows individuals to claim the credit for courses taken for professional development or to enhance specific vocational abilities.

There is no requirement for the student to be enrolled at least half-time to qualify for the LLC. This makes the credit accessible for part-time students or those taking only a few courses. The courses can be at an undergraduate or graduate level.

Income and Other Claim Limitations

The credit is subject to Adjusted Gross Income (AGI) phase-out ranges, meaning the amount of credit a taxpayer can claim is reduced or eliminated if their income exceeds certain thresholds. For the 2025 tax year, the credit begins to phase out for single taxpayers with a modified AGI over approximately $80,000 and is fully phased out for those with a modified AGI over about $90,000.

For married taxpayers filing jointly, the phase-out range typically begins with a modified AGI over approximately $160,000 and is fully phased out for those with a modified AGI over about $180,000. These ranges are subject to annual adjustments by the Internal Revenue Service (IRS).

Taxpayers cannot claim both the Lifetime Learning Credit and the American Opportunity Tax Credit (AOTC) for the same student in the same tax year. While both credits offer educational benefits, a choice must be made based on eligibility and the maximum potential benefit. Additionally, qualified education expenses used to calculate the credit must be reduced by any tax-free educational assistance received, such as scholarships, fellowships, or Pell Grants. This ensures that the same expenses are not used to receive multiple tax benefits.