Q. I asked a friend and he said there is absolutely nothing I could do to maximize the LLC because I hit the $2,000 limit at $1,400 + $600. Is that correct?
A. Yes. The LLC is $2000 max per tax return, unlike the AOC which is $2500 max per student. The LLC is a non refundable credit, so you would have to have a $2000 tax liability to get the max.
Q. How to maximize Lifetime Learning Credit (LLC)?
A. The LLC is 20% of qualified educational expenses (QEE) paid. For the LLC, QEE is tuition and fees only. Books and computers don't count. If you have less than $10K of QEE, you can't get the maximum LLC.
See my post on the 5 main points about the 1098-T for the scholarship loop hole to get more education credit. It's not as lucrative for the LLC as it is for the AOC (it's 20% for you vs whatever the student's tax rate is, which could be 0% or as much as 22%, but typically 10% -12%. The "kiddie tax" could apply). https://ttlc.intuit.com/community/college-education/discussion/i-need-help-with-1098t-section-colleg... See 2nd reply
{Edited 5-27-2512:15PM PST}
