topic Lifetime Learning Credit in Deductions & credits

Lifetime Learning Credit

zkidtax — Sat, 28 Mar 2020 01:07:12 GMT

Greetings,

I understand the Lifetime Learning Credit is nonrefundable. However, according to TurboTax, our tax liability for the year is $104, and the LLC we qualify for is $1099. I am confused why our refund still is reduced by $104, when the credit should reduce our tax liability to zero.

Thank you for your help.

Re: Lifetime Learning Credit

KrisD15 — Sat, 28 Mar 2020 01:28:01 GMT

The credit is on line 18d of your 1040.

If your tax liability is 104, then that is the most the credit can be.

What do you mean "the LLC we qualify for is $1099"?

What kind of LLC? A Sole Proprietor? Partnership? Qualify for 1099 in what?

Re: Lifetime Learning Credit

Hal_Al — Sat, 28 Mar 2020 01:32:39 GMT

The Lifetime Learning credit (LLC) can only reduce your income tax liability to 0. It can not be used to reduce other taxes, like self employment tax or penalties on line 15 of form 1040.

Re: Lifetime Learning Credit

zkidtax — Sat, 28 Mar 2020 02:27:16 GMT

The Lifetime Learning Credit (LLC). And the value of the credit based on our taxes was calculated at $1099.

Re: Lifetime Learning Credit

Hal_Al — Sat, 28 Mar 2020 11:36:26 GMT

What is on line 18 of form 8863?

What is on line 19 of form 8863?

What is on line 3 of Schedule 3?

What is on line 7 of Schedule 3?

What is on line 12b of form 1040?

What is on line 13b of form 1040?

What is on line 14 of form 1040?