Lifetime Learning Credit

Forum|Forum|6 years ago
March 28, 2020
4 replies
31 views

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.

KrisD15

Level 15

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?

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Hal_Al

Level 15

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.