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Lifetime tables website2/10/2024 For most students who are in one of their first four years of post-secondary education, the American Opportunity Credit can provide greater tax savings.Before claiming the Lifetime Learning Credit, you should determine whether you qualify to take the American Opportunity Credit.The IRS only allows one tax credit per student, per year. You can't claim the American Opportunity Credit in the same year you claim the Lifetime Learning Credit for a single student. Be sure to attach Form 8863 to your tax return before sending to the IRS.Transfer the credit amount to your income tax return.Complete the necessary section of the form for each eligible student.To claim the credit, enter those figures on Form 8863. Īt the end of the year, your educational institution should send you a Form 1098-T that reports your eligible costs. TurboTax Tip: For most students who are in one of their first four years of post-secondary education, the American Opportunity credit can provide greater tax savings than the Lifetime Learning Credit. For example, if your professor recommends that you purchase a textbook but you can still enroll in the class without one, then you can't include the cost of the textbook when calculating the credit.You can include the cost of tuition, fees, and any books or supplies you are required to purchase directly from the school, so long as it's a condition of enrollment.The maximum credit you can claim is 20% of up to $10,000 in eligible costs for a maximum credit of $2,000. However, this also depends on your filing status. If you earn too much income during the year, you may not be eligible to claim the credit.The credit is available for any post-secondary classes you take at a qualifying school and you don't have to be working toward a degree.To qualify for the Lifetime Learning Credit, you have to have made qualifying tuition and fee payments to a post-secondary school (after high school) during the year. To claim the Lifetime Learning Credit, enter the figures from the Form 1098-T you receive from your educational institution on Form 8863 and attach it to your tax return before sending it to the IRS.It shows information about the tuition and fees paid to the qualifying school. Your educational institution should send you a Form 1098-T at the end of the year.The maximum credit you can claim is 20% of up to $10,000 in eligible costs, for a maximum credit of $2,000.The Lifetime Learning Credit is available for qualifying tuition and fee payments you made to a post-secondary school (after high school) during the tax year.
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