Unfortunately, the exclusion for early withdrawal for education only applies to IRAs. Depending on the type of school and other factors, you may qualify for an education credit.
Exceptions to the
additional 10% tax apply for early distributions from an IRA that are:
- Made to a
beneficiary or estate on account of the IRA owner's death
- Made on
account of disability
- Made as part
of a series of substantially equal periodic payments for your life (or
life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary
- Qualified
first-time homebuyer distributions
- Not in
excess of your qualified higher education expenses
- Not in
excess of certain medical insurance premiums paid while unemployed
- Not in
excess of your unreimbursed medical expenses that are more than a certain
percentage of your adjusted gross income
- Due to an
IRS levy, or
- A qualified
reservist distribution
https://www.irs.gov/taxtopics/tc557
You are eligible to
claim the Lifetime Learning Credit if all of the following requirements are
met:
- You (or your dependent or a third party) paid qualified education
expenses for higher education.
- You paid the education expenses for an eligible student.
- The eligible student is you, your spouse, or a dependent you claim
an exemption for on your tax return.
- Your modified adjusted gross income is less than $67,000($134,000
if you are married filing jointly).
- The credit is reduced between $57,000 and $67,000 ($114,000 and
$134,000 MFJ).
To qualify, students must
attend an eligible institution. Almost all accredited public, nonprofit and
for-profit postsecondary schools (including many trade schools) fit this
description. To make sure a school is eligible, go to fafsa.gov and verify that it has a
Federal School Code..
https://www.irs.gov/credits-deductions/individuals/llc
