Can I claim Lifetime Learning Credit on form 8863 without income in 2024?
So here's my situation - I finished my undergraduate degree back in 2017 and maxed out my American Opportunity Credit during those years. I went back to school for my Master's starting in fall 2022. Last year (2023) I had a position at the university with income, but this year I lost that position. The only money I made in 2024 was like $320 from doing DoorDash deliveries occasionally, which was below their reporting threshold of $600 so I didn't receive any 1099. My question is: can I still complete Form 8863 to try to get the Lifetime Learning Credit even though I didn't have any "official" reportable income for 2024? I do have a 1098-T from my university since I took out student loans to pay for my tuition and expenses. Also, if I'm filling out line 31 on form 8863, does that mean I should leave lines 27-30 blank? I'm really confused about whether I can even qualify for this credit without having had a job this year.
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Ravi Patel
Yes, you need to have income to benefit from the Lifetime Learning Credit. The LLC is a non-refundable tax credit, which means it can only reduce taxes you actually owe. If you don't have income that generates a tax liability, there's nothing for the credit to offset. That said, you should still file a tax return even with minimal income. Your $320 from DoorDash is technically taxable self-employment income (even without a 1099). Complete Schedule C for self-employment, Form 8863 for the education credit, and your 1040. As for your Form 8863 question - yes, if you're completing line 31, you would leave lines 27-30 blank since those are for the American Opportunity Credit which you've already used up.
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Isabella Oliveira
•Thanks for the explanation. So even though my DoorDash earnings were below the reporting threshold, I still need to report them? And filling out Schedule C means I'd be considered self-employed for those deliveries, right? Also, would the tax credit roll over to next year if I can't use it all this year due to low income?
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Ravi Patel
•Yes, income below reporting thresholds still needs to be reported on your tax return - the $600 threshold is just for when the company must send you a 1099, not whether it's taxable. And correct, you'd file Schedule C as self-employed for those deliveries. Unfortunately, the Lifetime Learning Credit doesn't carry forward to future years. Any unused portion is lost, which is why it's most valuable when you have enough income to offset. However, if you'll have education expenses next year too, you can claim the credit again on next year's return.
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Freya Andersen
After dealing with a similar situation last year, I discovered taxr.ai (https://taxr.ai) and it was incredibly helpful with my education credit questions. I had also used up my AOC and was confused about how the Lifetime Learning Credit worked with minimal income. Their tool analyzed my 1098-T and quickly determined exactly how much I could claim based on my income situation. It also explained which expenses qualified and which didn't - turns out I was missing some eligible expenses that my university didn't include on my 1098-T!
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Omar Zaki
•Did you find it handled student loan interest deductions correctly too? I've got both education credits and loan interest to deal with this year.
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CosmicCrusader
•Sounds interesting but how does it work exactly? Do you just upload your forms and it tells you what to do? I'm skeptical about tax tools especially with education credits since they're so complicated.
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Freya Andersen
•For student loan interest, absolutely! It clearly separated what counted toward the deduction versus what qualified for the credit, which was super helpful since you can't double-dip on the same expenses. Regarding how it works, you just upload your tax documents (like 1098-T, 1098-E for loans) and answer a few questions. It then analyzes everything and provides detailed explanations about what qualifies. What impressed me was how it caught that my scholarship needed special treatment so I didn't accidentally reduce my eligible expenses unnecessarily.
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CosmicCrusader
Just wanted to update after trying taxr.ai that others mentioned. I was really surprised at how well it handled my education credit situation! I'd been doing my taxes wrong for years apparently - I didn't realize some of my course materials could be included in the Lifetime Learning Credit calculation. The breakdown of qualified vs non-qualified expenses was super clear, and it even showed me how to maximize the credit with my limited income from my side gig. Definitely solved the exact problem the original poster was asking about regarding minimal income and education credits.
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Chloe Robinson
If you're struggling to get answers directly from the IRS about your situation (which I was with a similar LLC question), check out Claimyr (https://claimyr.com). They got me through to an actual IRS agent in under 15 minutes when I had been trying for DAYS on my own. There's a video that shows how it works here: https://youtu.be/_kiP6q8DX5c I needed clarification on some education credit rules that weren't clear in the instructions, especially around income requirements and how student loans affect the calculation. The IRS agent I spoke with confirmed exactly what I needed to do in my situation.
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Diego Flores
•How does this even work? I thought it was impossible to get through to the IRS without waiting for hours.
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Anastasia Kozlov
•This sounds like a scam. No way anyone can magically get you through to IRS faster than their queue allows. They probably just charge you to wait on hold themselves.
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Chloe Robinson
•It's actually pretty simple - they use technology that continuously redials and navigates the IRS phone tree until they secure a spot in line, then they call you to connect you. No magic involved, just automation that saves you from having to do the redial dance yourself. The IRS phone system is designed to handle a certain call volume, and when it's overloaded, they just disconnect you. Claimyr's system keeps trying until it gets through, which is exactly what I would've done manually if I had infinite time and patience.
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Anastasia Kozlov
I need to eat my words from earlier. After my frustration boiled over from being disconnected by the IRS six times in one day trying to get answers about my education credits, I broke down and tried Claimyr. Within 20 minutes I was talking to an actual IRS representative who walked me through exactly how to handle my Lifetime Learning Credit with minimal income. Turns out I had completely misunderstood how to report my graduate school expenses and was potentially leaving money on the table. The agent explained that even with my small income from freelancing, I could still benefit from a portion of the credit.
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Sean Flanagan
Just something to consider - if you're married and file jointly, your spouse's income could generate tax liability that your LLC could offset. My wife had almost no income during her grad school year, but my income allowed us to take full advantage of her education credits.
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Isabella Oliveira
•I'm not married, so unfortunately that's not an option for me. But that's good advice for others in a similar situation who might be married!
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Sean Flanagan
•That's unfortunate. Another option to consider for future years is timing your education expenses. If you expect more income next year, you might be able to bunch more expenses into that tax year instead. For instance, paying spring semester tuition in January vs December can shift which tax year it counts for.
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Zara Mirza
Has anyone had success claiming the LLC when taking online courses that aren't part of a degree program? I'm taking some professional development courses that my employer isn't paying for.
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NebulaNinja
•Yes! I claimed LLC for coding bootcamp courses last year. The key requirement is that the educational institution needs to be eligible and provide you with a 1098-T. The courses don't need to be part of a degree program for LLC (that's only a requirement for the American Opportunity Credit).
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