Why am I not eligible for the Lifetime Learning Credit? I paid almost $10K in tuition for my last year of grad school and made less than that in income.

[meaghan9221]

After I fill out the education section including my 1098-T is says I qualify for the Lifetime Learning Credit but then don't get it because:

• There is no taxable income in your return
• There were no net qualified education expenses

Neither of these are true. 

[Texas Roger · Accepted solution]

The Lifetime Learning Credit is a non refundable credit meaning you must have a tax liability from taxable income after subtracting your standard deduction from your AGI. The standard deduction for a single filer is $12,000 so with less than $10,000 of income, you have no tax liability to offset the credit. 

[meaghan9221]

thank you. this was much faster / more helpful than the 20 minutes I've been on hold.