Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

Saving for College #2: Lifetime Learning Credit

September 27th

It can be incredibly disheartening to face paying today’s exorbitant college fees. While the Internal Revenue Service cannot do much to reduce the actual cost, their tax credits are a great means of defraying the cost and its impact on your tax bill.

One particularly valuable means of defraying the impact of college costs is the lifetime learning tax credit. Tax credits reduce the amount of income tax that a taxpayer is required to pay. This is different from a tax deduction, which reduces the amount of income subject to tax.

The lifetime learning credit offers taxpayers a credit of up to $2,000 each tax year for qualified educational expenses paid on behalf of all eligible students. There is no limit to the number of years this credit may be claimed.

Lifetime Learning Tax Credit

Taxpayers may claim the lifetime learning tax credit if they meet three major criteria. Firstly, eligible taxpayers must be paying the qualifying educational expenses for higher education. Secondly, the educational expenses must be paid on behalf of an eligible student. Last, the eligible student must be either yourself, your spouse, or a dependent for whom you claim a tax deduction on your return

For each student, the taxpayer may only claim one education credit per tax year. This means that a lifetime learning credit may not be claimed in conjunction with another education credit, such as the American opportunity credit. The lifetime learning credit is a non-refundable credit, meaning that while it can reduce your tax to zero, it cannot be paid as a refund beyond the amount used to eliminate tax.

For more information on possible tax credits, consult with a qualified tax lawyer, who can assess your situation and advise on the best means of managing the impact of college costs on your tax bill.



Subscribe Now

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011