If your AGI is $90,000 and your single, then you would be over the income limit for claiming the credit.
To claim the full education credit your MAGI must be below $80,000. At $80,000 the credit starts to phase out and at $90,000 the credit is not available.
I am not sure why it is telling you your income tax is $0, it seems like it should be telling you your credit is $0.
If your MAGI would be less than $90,000 the the following would need to apply to claim the credit:
Lifetime Learning Credit
- You can take this for an unlimited number of years
- Twenty percent of expenses up to $2,000
- Non-Refundable meaning this can reduce the amount of taxes you owe, but if your tax liability is less than the LLC, your tax will be reduced to $0 and the rest of the credit is lost.
- Cannot be claimed as a dependent on any one else's return
- Be enrolled for at least one academic period beginning in the tax year. Academic Period can be semesters, trimesters, quarters, or any other period of study such as a summer school session. The school determines academic periods. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period.
- Be enrolled or taking courses at an eligible educational institution.
- Be taking higher education course or courses to get a degree or other recognized education credential or to get or improve job skills.
- To claim the full credit, your modified adjusted gross income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly).
- You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly).
- You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers).
- You cannot be Married Filing Separately
American Opportunity Tax Credit.
- Available for the first 4 years of college
- Max amount is $2,500 per student
- Partially refundable credit meaning if your tax liability is $0, 40% (up to $1,000) is refundable
- Be enrolled in a degree or credential seeking program
- Not have a felony drug conviction
- Be enrolled at least half time
- cannot be claimed as a dependent on anyone else's return.
- To claim the full credit, your modified adjusted gross income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly).
- You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly).
- You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers).
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