I'm not qualifying for the Lifetime Learning Credit even though my expenses were more than $10k. Why is this?

[amanda-arend]

I'm trying to figure out why I don't qualify for the Lifetime Learning Credit and it's baffling me. All signs point to me being able to claim it, but it keeps coming back to tell me I'm getting $0.

For reference, my education expenses were over $10k, I am a graduate student (so I don't qualify for the American Opportunity Credit), and I made around $1500 in wages (from both a retail job and a self employed job) over the course of the year. Can anyone give me any insight into why I'm not qualifying for the $2000 refund? Is it because I was self employed for a few months? I don't get it.

[xmasbaby0 · Accepted solution]

The Lifetime Learning Credit is not a refund.  it is a credit that can reduce the ordinary income tax you owe.  If you only had income of $1500, then you do not owe any tax, so no credit is applied.

[xmasbaby0]

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3262982-what-expenses-qualify-for-the-lifetime-learning-credit">ht...>

[amanda-arend]

Ughh really? That sucks because I've gotten the AOC before and it WAS a refund :( Oh well... thanks for the explanation!

[xmasbaby0]

Please take note of the last sentence of this FAQ   "Since this is not a refundable credit, the credit can't be more than your tax liability."