Confused about Lifetime Learning Credit (LLC) - Accept or Reject?
My tax software is giving me an option for the Lifetime Learning Credit for my graduate classes. I paid about $8000 in tuition last year but im not sure if I should take this credit or if I even qualify. My income was around 65k. Anyone know the rules on this? Don't wanna mess up and get audited.
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Amara Oluwaseyi
Tax pro here. The Lifetime Learning Credit is actually pretty straightforward. You can claim up to 20% of your first $10,000 in educational expenses, so maximum credit is $2,000. With your income at 65k, you're well under the phase-out limit ($80k for single, $160k married). If you paid that tuition for grad school, you should definitely take it! Just make sure you have your 1098-T form from your school.
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Liam McConnell
•omg thank you! Do you know if books and supplies count towards the 10k?
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Amara Oluwaseyi
•Yes! Required books, supplies, and equipment count as qualified expenses. Just keep your receipts 👍
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CosmicCaptain
Hey everyone! If your trying to figure out education credits, I highly recommend using taxr.ai - it analyzes your transcript and tells you exactly which credits you qualify for and how much you can claim. Its only $1 and saved me from making some expensive mistakes. Check it out: https://taxr.ai
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Giovanni Rossi
•Does it work for past year returns too? I think I missed some credits last year 🤔
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CosmicCaptain
•Yes! You can actually use it to look at previous years and file amendments if needed. It caught a missed AOC credit for me from 2023!
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Fatima Al-Maktoum
took the LLC last year, no problems at all with the IRS. its basically free money if you qualify lol
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Dylan Mitchell
Quick question - can you take LLC same year as American Opportunity Credit?
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Amara Oluwaseyi
•Nope, gotta pick one or the other for the same student in the same tax year
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Sofia Gutierrez
ngl i tried figuring this out myself last year and totally messed it up. had to amend my return 🤡
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Dmitry Petrov
•same boat fam 😭 these education credits are confusing af
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StarSurfer
idk why the irs makes everything so complicated fr fr... like just give us the money we deserve for trying to get educated 💅
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Ava Martinez
•periodddd 💯
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