☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 4, 2019 10:53:19 PM

Lifetime learning credit

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?

0 1 675
1 Best answer
Expert Alumni
Jun 4, 2019 10:53:20 PM

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 Replies
Expert Alumni
Jun 4, 2019 10:53:20 PM

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.