Lifetime Learning Credit for college student

[dcdan05]

Hi all,

My daughter is in 4th year college for BS. Her W2 income was less than 5k/year. We assisted her for tuition and other.  She got 1098-T scholarship from her school. She filed her own tax in the past 3 years as independent. Can she qualify for Lifetime Learning Credit ? 

Thank you.

[Vanessa A]

No.  In order to claim the Lifetime Learning Credit, she would have to have taxable income.  If her income was less than $5k, then she does not have taxable income.  The LLC is a nonrefundable credit.  This means, if you don't have tax liability, you will not benefit from the credit. 

How old is she?  Why don't you claim her?

If she is over 23 years old, then she could claim the American Opportunity Tax Credit which does have a refundable portion to it. 

Depending on her age, and your income, you could possible claim her and then take the AOTC since she is in her 4th year of school. The AOTC is:

• 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

Tax Benefits for Education