J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

33.9 Lifetime Learning Credit

For academic expenses paid during 2012, you may claim on Form 8863 a Lifetime Learning credit of up to $2,000 for the total qualified expenses paid for yourself, your spouse, or your dependents enrolled in eligible educational institutions (33.7) during the year, subject to the income phaseout (33.10). The credit is nonrefundable, meaning that it cannot exceed your regular tax plus AMT liability. In addition to tuition, the only qualified expenses are student activity fees and course-related books, supplies, and equipment that must be paid to the educational institution as a condition of enrollment or attendance.

In contrast to the American Opportunity credit, the Lifetime Learning credit does not have a degree requirement or a workload requirement. The credit may be claimed for one or more courses at an eligible educational institution that are either part of a post-secondary degree program or part of a nondegree program taken to acquire or improve job skills. The Lifetime Learning credit is not limited to students in the first four years of postsecondary education, as is the American Opportunity credit. There is no limit on the number of years for which the Lifetime Learning credit can be claimed.

The Lifetime Learning credit for 2012 is 20% of the first $10,000 paid in 2012 for qualified expenses for all eligible students in the family. Thus, the maximum Lifetime Learning credit you may claim for 2012 is $2,000 (20% of $10,000), but the maximum ...