Bursar's Office

Taxpayer Relief Act of 1997 - Lifetime Learning Tax Credit

The Lifetime Learning is a non-refundable tax credit. This credit may be claimed for the qualified tuition and related expenses of the taxpayer, the spouse, and/or dependents if the student is:

• Enrolled in an undergraduate, graduate, or professional study
• Enrolled in at least one post-secondary course

Calculation of Benefits: The taxpayer may claim 20% of the first $10,000 of qualified expenses, with a maximum of $4,000 per family.

Income Qualifications: The amount a taxpayer can claim is gradually reduced when their modified adjusted gross income is between $41,000 and $55,000 ($82,000 - $110,000 for married taxpayers filing jointly). Taxpayers with a modified adjusted gross income of $55,000 or more ($110,000 or more for married taxpayers filing jointly) are not eligible to claim these tax credits.

Limitations: A taxpayer can claim only "out-of-pocket" expenses. Qualified expenses paid with grants, tax-free scholarships, tax-free distribution from an Education IRA, or tax-free employer-provided educational assistance cannot be used in calculating this credit.

Credit cannot be claimed for both the Hope Tax Credit and the Lifetime Learning Tax Credit in the same tax year.