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Level 1
June 5, 2019
Solved

Lifetime learning credit

  • June 5, 2019
  • 1 reply
  • 11 views
I am in my second year of graduate study, I fund my studies through federal loans, I do not have any income. Why is it saying I am not eligible for this?
Best answer by ChristinaS

The Lifetime Learning Credit is a nonrefundable tax credit. A nonrefundable credit reduces your tax liability, but doesn't produce a refund if you have no tax liability.

If you have no income, you have no tax liability. Therefore, you have no use for a nonrefundable tax credit such as the LLC.

1 reply

Level 10
June 5, 2019

The Lifetime Learning Credit is a nonrefundable tax credit. A nonrefundable credit reduces your tax liability, but doesn't produce a refund if you have no tax liability.

If you have no income, you have no tax liability. Therefore, you have no use for a nonrefundable tax credit such as the LLC.