Can I take the Lifetime Learning Credit if I have MAGI of $78,000; 9,500 of educational expenses; 7,500 reimbursement from my employer for education expenses.

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April 14, 2026
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ThomasM125

Level 15

Since you have more in education expenses then assistance in paying for it, and your income is below the phase-out amount, you will qualify for a lifetime learning credit, assuming you qualify otherwise.

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Hal_Al

Level 15

Q. Can I take the Lifetime Learning Credit (LLC)? I have MAGI of $78,000; 9,500 of educational expenses; 7,500 reimbursement from my employer for education expenses.

A. Yes, but you may only use $4250 of the educational expenses to claim the credit. $9500 - 5250 = $4250.* Only tuition and fees are qualified expenses for the LLC. Books and other course materials are not, unless paid to the college as a condition of enrollment.

*By law your employer can only give you $5250 maximum, tax free tuition assistance.

If you got more than $5250, the amount above $5250 is usually included in box 1 of your w-2 .

Since you have paid tax on that part, it is considered your after tax money and that amount can be used to claim the tuition credit. For tax purposes, it’s not really reimbursement, it’s your money.