How is the Lifetime Learning Credit calculated?

The Lifetime Learning Credit equals 20% of adjusted qualified education expenses, with up to $10,000 of expenses counted per return, for a maximum credit of $2,000 before any MAGI phaseout and tax-liability limits.

Can I claim the credit for job-skills courses?

Yes. The Lifetime Learning Credit can apply to eligible higher-education courses taken to acquire or improve job skills, and it is available for all years of postsecondary education.

Is the Lifetime Learning Credit refundable?

No. The Lifetime Learning Credit is nonrefundable, so it can reduce tax owed but generally does not create a refund beyond your available tax liability.

Current IRS LLC rules

Lifetime Learning Credit (LLC) Calculator

Q: What expenses qualify for the Lifetime Learning Credit?

Qualified expenses generally include tuition and required fees. Books, supplies, and equipment count only if they must be paid directly to the institution as a condition of enrollment or attendance.

Estimate your federal education tax credit for tuition, required fees, and certain institution-required course materials, then see how MAGI phaseouts and tax liability affect the final value.

Up to $2,000 per return 20% of up to $10,000 Nonrefundable credit Job-skills courses can qualify

$2,000 Maximum annual credit per return

$10,000 Maximum adjusted expenses used in the formula

All years Available for all years of postsecondary study

$80k/$160k Full-credit MAGI threshold by filing status

In short

Estimate your LLC in four steps

Enter taxpayer details, add each eligible student, subtract tax-free aid and refunds from qualified expenses, then apply the $10,000 per-return cap, the MAGI phaseout, and the nonrefundable tax-liability limit.

Per-return credit MAGI phaseout built in Multiple students supported Nonrefundable by design

This is an estimate for planning purposes. Actual filing results can change based on Form 8863, Form 1098-T details, dependency status, TIN timing, school eligibility, tax-liability limits, and how the same expenses are used for other education benefits.

Quick rule reminders

Include only adjusted qualified expenses

Include tuition and required fees paid to an eligible institution.
Include books, supplies, and equipment only if they had to be paid directly to the institution as a condition of enrollment or attendance.
Subtract tax-free scholarships, grants, employer aid, veterans aid, and refunds before calculating the credit.
Do not include room and board, transportation, insurance, medical costs, or personal living expenses.

Step 1

Taxpayer information

These inputs control the MAGI phaseout, filing-status eligibility, and the estimated nonrefundable amount you can actually use.

Filing status LLC is generally not allowed for married filing separately. Nonresident aliens generally need resident treatment for the year.

Modified adjusted gross income (MAGI) Use the claimant's MAGI for the return. The phaseout applies after the eligible students' adjusted expenses are totaled and capped at $10,000.

Federal income tax liability available for nonrefundable credits LLC is nonrefundable. Enter the estimated tax still available after other limits and credits you expect to claim.

Planner label This label is for the results summary only. Update it if you change the page title or tax-year context.

The Lifetime Learning Credit is nonrefundable, so any amount above your usable tax liability is generally lost rather than refunded.

Step 2

Basic eligibility checks

Leave these checked only if they are true for the person claiming the credit or the return overall.

The claimant is not claimed as a dependent on another person's return. The claimant is not a nonresident alien for any part of the year, or resident treatment is properly available. The claimant and each included student have valid TINs by the return due date, including extensions. The school issued Form 1098-T or the return otherwise meets an IRS exception and documentation rule.

This calculator estimates the amount of the credit. It does not replace Form 8863, Publication 970, or taxpayer-specific filing advice.

No double benefit rule: you cannot use the same student or the same expenses for LLC and AOTC, or for another tax-free education benefit such as the tax-free part of a 529 or Coverdell distribution.

Step 3

Eligible students and expenses

Add one card per student. This calculator supports up to 6 students on the same return, but the LLC still caps total expenses used in the formula at $10,000 per return.

1 student added.

Step 4

Estimated LLC results

Calculate total LLC-eligible adjusted expenses, cap the amount used at $10,000, apply the MAGI phaseout, then limit the nonrefundable result to the tax liability you entered.

Enter your details and click Calculate LLC to see the estimated credit, phaseout factor, and per-student expense breakdown.

Estimated total tax benefit

$0.00

Current IRS rules

Allowed LLC after phaseout

$0.00

No phaseout applied

Adjusted expenses used in formula

$0.00

Per-return cap: $10,000

Nonrefundable amount used

$0.00

Limited by entered tax liability

Student	Adjusted expenses	Share of cap used	Status

Total LLC-eligible adjusted expenses$0.00

Expenses excluded by the $10,000 cap$0.00

Tentative credit before phaseout$0.00

Phaseout factor applied100.00%

Unused nonrefundable amount due to tax liability$0.00

If total eligible adjusted expenses exceed $10,000, each student's “share of cap used” is allocated proportionally for on-page display only.

FAQ

Lifetime Learning Credit questions

How is the LLC calculated?

The tentative credit is 20% of adjusted qualified education expenses, with no more than $10,000 of expenses counted per return. That creates a maximum credit of $2,000 before any MAGI phaseout and tax-liability limit.

What expenses count for LLC?

Generally, tuition and required fees count. Books, supplies, and equipment count only if they must be paid directly to the institution as a condition of enrollment or attendance. Room and board, transportation, insurance, medical costs, and most personal living expenses do not count.

Who can qualify for the Lifetime Learning Credit?

You can generally claim it for yourself, your spouse, or a dependent you claim if the student attends an eligible postsecondary institution, or takes qualifying higher-education courses to acquire or improve job skills, and the expenses are paid for an academic period that begins in the tax year or the first three months of the next year.

Is the LLC refundable?

No. The Lifetime Learning Credit is nonrefundable. It can reduce tax owed, but any amount above your remaining usable tax liability is generally not refunded.

Can I claim LLC and AOTC for the same student?

No. You cannot claim the American Opportunity Tax Credit and the Lifetime Learning Credit for the same student in the same tax year. Different students on the same return can sometimes use different credits, but the same student cannot generate both credits for the same year.

Lifetime Learning Credit (LLC) Calculator

Estimate your LLC in four steps

Include only adjusted qualified expenses

Taxpayer information

Basic eligibility checks

Eligible students and expenses

Estimated LLC results

Lifetime Learning Credit questions

Before filing your return

Student 1