The following information was taken directly from the IRS.gov website. Hopefully this gives you a better understanding of what the LLC is and who qualifies.
"The Lifetime Learning Credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degree courses--including courses to acquire or improve job skills. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return."
To claim a LLC, you must meet all three of the following:
- You, your dependent or a third party pay qualified education expenses for higher education
- You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution
- The eligible student is yourself, your spouse or a dependent you listed on your tax return
Who is an eligible student for LLC?
- To be eligible for LLC, the student must:
- Be enrolled or taking courses at an eligible educational institution
- Be taking higher education courses to acquire a degree or improve job skills
- Be enrolled for at least one academic period
*Academic Period can be semesters, trimesters, quarters or any other period of study such as a summer school session. Academic periods are determined by the school. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period
Claiming the credit
Generally, students receive a Form 1098-T, Tuition Statement, from their school by January 31. This statement helps you figure your credit. The form will have an amount in either box 1 or 2 to show the amounts received or billed during the year. But, this amount may not be the amount you can claim. See qualified education expenses for more information on what amount to claim.
Check the Form 1098-T to make sure it is correct. If it isn't correct or you do not receive the form, contact your school.
To claim the LLC, you must complete the Form 8863. Attach the completed form to your Form 1040 or Form 1040A.
Need more clarification about the Lifetime Learning Credit? contact Ken A. Anaya at www.KAA4Tax.com or call toll FREE (844) KAA-4TAX.