11 Education Tax Credits and Deductions Available

2. Lifetime Learning Credit (Up to $2,000 per return)

The Lifetime Learning Credit (LLC) can reduce taxes for tuition and related expenses for undergraduate, graduate, and certain continuing-education courses. Unlike the AOTC, the LLC is claimed per tax return rather than per student and is nonrefundable, so it can lower your tax bill but won’t generate a refund on its own. The credit is commonly calculated as up to 20% of the first $10,000 in eligible expenses, for a maximum credit of $2,000 per return. It’s often a go-to option for adult learners, part-time students, or graduate students who don’t qualify for the AOTC. To claim the LLC, file Form 8863 and keep your Form 1098‑T and receipts for qualifying costs. Example scenario: A part-time graduate student who pays $4,000 in qualifying tuition might claim the LLC, reducing taxable liability though not producing a refundable credit. Income phase-outs affect eligibility, and changes can occur, so check the IRS “Education Credits” guidance before filing to confirm amounts and thresholds.