Can I claim Lifetime Learning Credit after using American Opportunity credit for 4 years?

So I finally finished my bachelor's degree in May 2022 (took me longer than expected lol) and I've already used up all four years of the American Opportunity Tax Credit. Now I'm wondering if I can use the Lifetime Learning Credit for my 5th year of college that I just finished? My FAFSA covered most of my education expenses in 2022, but I still had to pay about $350 out of pocket each month to the college for various fees and stuff they didn't cover. Do I qualify for the Lifetime Learning Credit in this situation? I'm really hoping to get some kind of tax break since I've been paying so much for school!

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20 comments

StarSailor

•8M

Yes, you can definitely claim the Lifetime Learning Credit after exhausting your four years of the American Opportunity Credit! The Lifetime Learning Credit was designed specifically for situations like yours. Unlike the AOTC which is limited to four years, the LLC can be claimed for an unlimited number of years. For the Lifetime Learning Credit, you can claim up to 20% of the first $10,000 in qualified education expenses, for a maximum credit of $2,000. The expenses you paid out of pocket each month should qualify as long as they were required for enrollment. The key thing is that you must have paid qualified education expenses that weren't covered by tax-free educational assistance (like certain scholarships or grants). So if your FAFSA aid was in the form of loans or taxable scholarships, those expenses could still qualify!

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StarSailor

•8M

Qualified education expenses for the Lifetime Learning Credit primarily include tuition and fees required for enrollment. So those monthly payments you were making to the college would generally count. Books, supplies, and equipment can qualify if they were required for enrollment and had to be purchased directly from the school. If your scholarship covered tuition but you paid for required books, those book expenses could qualify if they were required as a condition of enrollment and purchased from the institution. However, if you bought them elsewhere (like Amazon), they typically wouldn't count for the LLC.

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Ava Garcia

•8M

I was in the exact same situation last year and found this amazing tool called taxr.ai that helped me figure out exactly what credits I could claim after maxing out my AOTC. I was also in my 5th year and wasn't sure if those monthly payments would qualify for the Lifetime Learning Credit. I uploaded my education expense statements to https://taxr.ai and it analyzed everything for me, showing which expenses qualified and which didn't. Saved me a ton of headache trying to interpret the IRS rules myself!

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Ava Garcia

•8M

The tool works by analyzing your education documents when you upload them - digital copies work best, but you can also take pictures of paper statements. It uses AI to identify which expenses qualify for various education credits based on current tax rules. It definitely explains the reasoning behind each qualification decision. That's actually what I found most helpful - it highlights which expenses qualify and cites the specific IRS rules that apply. For example, it showed me that my technology fee qualified but my parking permit didn't, and explained exactly why with references to the tax code.

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Zainab Ismail

•8M

Just wanted to update everyone - I tried taxr.ai after seeing it mentioned here and it was actually super helpful for my situation! I had a mix of expenses from my last semester (some covered by grants, some I paid out of pocket) and wasn't sure what would qualify for the Lifetime Learning Credit. The tool broke everything down and showed me I could claim about $1,800 in qualified expenses that I didn't realize would count! It even explained how to handle the partial year calculation since I graduated in May. Definitely made filing way less stressful.

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Connor O'Neill

•8M

If you're having trouble getting a clear answer about your education credits, you might want to try Claimyr. I spent literally HOURS trying to get through to the IRS to clarify my education credit questions (kept getting disconnected after waiting forever). Then I found https://claimyr.com which actually got me connected to a real IRS agent in about 15 minutes! You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone system for you and call you when they've got an agent on the line. The agent I spoke with confirmed I could claim the LLC after using up my AOTC and clarified exactly which expenses qualified in my situation.

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Connor O'Neill

•8M

The service works by using their technology to navigate the IRS phone system and wait on hold for you. They call you once they've got an IRS agent on the line. While technically you could do it yourself, the reality is the IRS phone lines are absolutely swamped - I tried calling 6 different times and either got disconnected or was told the wait was over 2 hours. They use a system that can stay on hold indefinitely and knows exactly which options to select to get to the right department. I was skeptical too at first, but when I was connected to an actual IRS agent after trying unsuccessfully for days on my own, it was worth it. They don't answer questions for you - they just get you connected so you can ask your own questions directly to the IRS.

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Yara Nassar

•8M

Ok I need to eat my words here. After posting my skeptical comment, I decided to try Claimyr because I was desperate to figure out if I could claim both education credits in the same year (different students). I couldn't find a clear answer online and kept getting disconnected when calling the IRS directly. Used the service and got connected to an IRS rep in about 20 minutes. The agent confirmed that I CAN claim the LLC for my expenses even though my daughter used the AOTC (different students = different credits). Saved me from potentially making a big mistake on my return!

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Keisha Williams

•8M

Just a heads up based on my experience - make ABSOLUTELY sure you have documentation for those monthly payments you made to the school. I claimed the LLC last year and got audited because I couldn't prove some of my education expenses. The IRS wanted to see actual receipts showing what the payments were for, not just bank statements showing money going to the university. My school had a student portal where I could download official receipts showing exactly what each payment covered.

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Keisha Williams

•8M

The IRS definitely accepted the electronic copies from my student portal. I just downloaded the PDFs and submitted them during the audit. The important thing was that they showed the breakdown of what the payments were for (tuition, fees, etc.) rather than just showing a lump sum payment. You should be fine with the electronic versions from your portal - just make sure they clearly show what each payment covered so the IRS can verify they were qualified education expenses.

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Yuki Sato

•20d

Great question Sofia! I was in a similar situation a few years back. Yes, you can absolutely claim the Lifetime Learning Credit after using up your 4 years of AOTC - that's exactly what it's designed for! The LLC allows you to claim 20% of up to $10,000 in qualified education expenses (so max $2,000 credit). Those monthly $350 payments you made should definitely qualify as long as they were for tuition and required fees. The fact that FAFSA covered most expenses doesn't disqualify you - you can claim the LLC on the portion you paid out of pocket. Just make sure you keep good records of what those payments covered. Download official receipts from your student portal showing the breakdown of fees - this will be important if you ever get audited. The IRS wants to see exactly what the payments were for, not just bank statements. Also double-check your income limits - the LLC phases out starting at $80k for single filers, so you should be fine unless you're in a higher income bracket.

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