topic 24 yo daughter not eligible for an lifetime learning credit in Education

24 yo daughter not eligible for an lifetime learning credit

BeenThereDoneThat17 — Wed, 11 Feb 2026 04:01:52 GMT

A 24 year old "kid" that made more ~$4,200 (actually, $11,500) in 2023 has effectively aged out of being their parents tax dependent, but at least the kid started a real job by October 2023 after graduating with a Masters in August. Kid (Dad, really) does the 1040 as "single" on TurboTax claiming 1 as the kid. Dad already claimed the Amer. Oppty Credit for 4 years in the past. Spent about $4,500 in tuition and books in 2023. Turbo Tax says:

"You can't claim an education tax break. Based on what you've entered so far you are not eligible for an education credit. Here is why you may not qualify: 1. Somebody else can claim you as a dependent on their return 2. There is no taxable income in your return 3. There were no net qualified education expenses."

So, 1 & 3 don't apply as described above. Does 2. apply because kid's gross income was less than $13,850?

Re: 24 yo daughter not eligible for an lifetime learning credit

xmasbaby0 — Fri, 09 Feb 2024 01:13:24 GMT

The Lifetime Learning Credit is non -refundable. It can only be used to reduce a tax liability. And your daughter did not have enough income to have a tax liability. Her standard deduction is $13,850. She earned less---so all of her income is already "tax free." And ----since you cannot claim her as a dependent now, you cannot use the credit on your return.

Re: 24 yo daughter not eligible for an lifetime learning credit

Hal_Al — Fri, 09 Feb 2024 02:31:09 GMT

Q. Does 2. (There is no taxable income in your return) apply because kid's gross income was less than $13,850?

A. Yes.

Re: 24 yo daughter not eligible for an lifetime learning credit

BeenThereDoneThat17 — Fri, 09 Feb 2024 15:32:58 GMT

Thanks to xmasbaby0 for holding my hand and confirming my suspicions. I told my kid they were in a tax "donut hole" since she made too much to be a tax dependent and too little to get credit on tuition costs 😉

Re: 24 yo daughter not eligible for an lifetime learning credit

BeenThereDoneThat17 — Fri, 09 Feb 2024 15:27:31 GMT

Hal_Al, I appreciate the succinct answer from another level 15, thanks!