If a lifetime learning credit can be worth a $2k per return and I pay $2,700 in continuing ed, does that mean I effectively only spend $700 after the credit?

[Anonymous]

we make less than $131,000 as a couple filing jointly, 

[Hal_Al · Accepted solution]

No. The  Lifetime Learning Credit (LLC) is 20% of the amount you pay, up to $2000. If you only paid $2700 in qualified continuing ed expenses, your LLC is only $540.

You actually may be better off claiming the tuition and fees deduction (TFD) as you appear to be in the 25% tax bracket. 0.25 x $2700 = $675. The TFD usually helps you on your state return too. The TFD is limited to $2000 for couples with MAGI over $130,000. $2000 x 0.25 = $500

TurboTax will select the best education benefit for you

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