The lifetime learning credit is a tax credit that may be available to you if you pay higher education costs. You may be able to claim a lifetime learning credit for qualified tuition and related expenses paid for all students enrolled in eligible educational institutions. There is no limit on the number of years for which the lifetime learning credit can be claimed for each student.

For purposes of the lifetime learning credit, an eligible student is a student defined as a student enrolled in one or more courses at an eligible educational institution.

Generally, the credit is allowed for tuition and fees required for enrollment or attendance at an eligible educational institution. These tuition and fees generally should have been paid in 2007 for an academic period beginning in 2007 or in the first three (3) months of 2008.

The amount of lifetime learning credit is 20% of the first $10,000 of qualified tuition and related expenses you paid for all eligible students. The maximum amount of lifetime learning credit you can claim in 2007 is $2,000. However, the amount of your lifetime learning credit is gradually reduced if your modified adjusted gross income is between $47,000 and $57,000 ($94,000 and $114,000 if you file a joint return). You cannot claim a Lifetime Learning credit if your modified adjusted gross income is $57,000 or more ($114,000 or more if you file a joint return).

Additional information on the lifetime learning credit:

IRS Publication 970 - Tax Benefits for Higher Education (link opens new browser window)

IRS Taxpayer Help and Education – Frequently Asked Tax Questions and Answers (link opens new browser window)

This information is not intended as legal or tax advice. Individuals should obtain IRS Publication 970, Tax Benefits for Higher Education, or contact a tax advisor about personal income tax situations.