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Level 2
posted Mar 16, 2021 3:51:14 PM

Why is my Lifetime Learning credit not $2000?

I am a full-time graduate student. My tuition for graduate college is well above 20K, so I should qualify for $2000 in Lifetime Learning credit based on 20% of the first 10k that I paid towards my tuition.  My 1099 income is 25K and my interest income is about 1,400. I do not have any other income.  I received $500 in scholarship.  But TT calculated my Learning Credit as $973 instead of 2K.   Any idea why it did not  calculate full 2K as Lifetime Learning Credit?

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1 Replies
Level 15
Mar 16, 2021 3:54:22 PM

The credit is not refundable--it is not added to your refund.  It can only be used to reduce your tax owed down to zero.