The Lifetime Learning Credit is the education credit for people the American opportunity credit does not cover: part-time students, graduate students, people taking a single course and people building job skills. It is smaller, but it has few conditions.
This guide gives the amount, the income limits, who qualifies, how it differs from the American opportunity credit, the new Social Security number rule and a worked example. It follows IRS Publication 970, the Form 8863 instructions and the IRS education credits page.
The Lifetime Learning Credit (LLC) is 20% of the first $10,000 of qualified education expenses paid for all the students you claim on the return, so the maximum is $2,000 per return, not per student. It is nonrefundable: the credit is limited to the amount of tax you must pay on your taxable income.
| Qualified expenses for all students on the return | Credit before any income phase-out |
|---|---|
| $2,000 | $400 |
| $5,000 | $1,000 |
| $7,500 | $1,500 |
| $10,000 | $2,000 |
| $15,000 | $2,000 |
The credit is figured on the total, so adding a second student does not raise the cap.
You can claim the LLC if you pay qualified education expenses of higher education for an eligible student, and the student is yourself, your spouse or a dependent you claim on your return. The IRS table lists what makes the LLC more flexible than the American opportunity credit:
You cannot claim the credit if your filing status is married filing separately, if you are listed as a dependent on another person's return, if you (or your spouse) were a nonresident alien for any part of the year and did not elect to be treated as a resident alien, if you claim the American opportunity credit for the same student in the same year, or if your modified adjusted gross income (MAGI) is at or above the limit below.
| Filing status | Full credit if MAGI is below | Reduced between | No credit at or above |
|---|---|---|---|
| Single, head of household, qualifying surviving spouse | $80,000 | $80,000 and $90,000 | $90,000 |
| Married filing jointly | $160,000 | $160,000 and $180,000 | $180,000 |
For most people MAGI is adjusted gross income, modified by adding back items such as the foreign earned income exclusion and the foreign housing exclusion or deduction (Worksheet 3-1 in Publication 970 lists them). These are the figures in the 2025 edition of the publication. The IRS draft 2026 instructions for Form 8863 (dated September 2026, not final) show the same limits for 2026: a MAGI of $90,000 or more ($180,000 or more joint) rules out the credit.
Qualified expenses are tuition and fees required for enrollment or attendance, including amounts required to be paid to the institution for course-related books, supplies and equipment. Use only the amounts you paid, or are treated as having paid, during the tax year. The law generally requires you or your dependent to have received Form 1098-T from an eligible educational institution, whether domestic or foreign. There is an exception: if the institution is not required to furnish a Form 1098-T for the student (for example, courses for which no academic credit is awarded), you may still claim the credit if you can show enrollment and substantiate the payment. See our Form 1098-T guide. Expenses paid by a dependent you claim, or by a third party for that dependent, are treated as paid by you.
| Lifetime Learning Credit | American Opportunity Credit | |
|---|---|---|
| Maximum | $2,000 per return | $2,500 per student |
| Refundable? | No | Partly (40%) |
| Years | Unlimited | 4 tax years per student |
| Degree program required? | No | Yes |
| Courses | One or more | At least half-time |
You can claim only one of the credits per qualifying student, and both on the same return only if they are for different students and different expenses. If you claim the American opportunity credit for a student you can choose between using that student's expenses for it or for the LLC. See our American Opportunity Tax Credit guide for its rules.
Beginning in 2026, Publication 970 says individuals claiming the American opportunity credit or the lifetime learning credit will be required to have a Social Security number that is valid for work and that was issued before the due date of the return. Where the person claiming the credit is not the student, the student also needs a valid SSN to qualify. On a joint return, the draft 2026 Form 8863 instructions say only one spouse must have a valid SSN. Check your records before you file.
A married couple filing jointly with MAGI of $150,000 claim their dependent child, who takes part-time courses at a community college (not toward a degree) and pays $7,500 in tuition and required fees. They cannot use the American opportunity credit because the student is not in a degree program, but the LLC applies.
| Step | Amount |
|---|---|
| Qualified expenses | $7,500 |
| 20% of the first $10,000 | $1,500 |
| Credit | $1,500 |
Their MAGI is below $160,000, so there is no phase-out. Because the credit is nonrefundable, it can reduce their tax only down to zero. If expenses had been $14,000, only the first $10,000 would count and the credit would be $2,000. This is an illustration.
IRS Publication 970 (2025), IRS: Education credits (AOTC and LLC), Instructions for Form 8863 (2025).