2017 Lifetime Learning Credit
For 2017, the Lifetime Learning Credit figures are $2,000 (Maximum credit), 20% (Rate on qualified expenses), $10,000 (Qualified expenses limit) and 2 more figures below.
Effective 2017-01-01Source: Publication 970 (2017), Tax Benefits for Education (IRS)Verified 2026-09-03
Compared with 2016
| Item | 2016 | 2017 | Change |
|---|---|---|---|
| Maximum credit | $2,000 | $2,000 | +$0 (+0.0%) |
| Rate on qualified expenses | 20% | 20% | +0% (+0.0%) |
| Qualified expenses limit | $10,000 | $10,000 | +$0 (+0.0%) |
| MAGI limit, single filers | $65,000 | $66,000 | +$1,000 (+1.5%) |
| MAGI limit, joint filers | $131,000 | $132,000 | +$1,000 (+0.8%) |
Who it applies to
Taxpayers who paid qualified education expenses for eligible students in 2017
What changed this year, and why
The 2017 Lifetime Learning Credit allows a maximum credit of $2,000 per tax return. The credit is calculated as 20% of qualified education expenses, up to $10,000 in expenses per tax return. The credit is nonrefundable and can reduce tax liability to zero but any excess is not refunded.
Common questions
- How is the Lifetime Learning Credit calculated?
- The credit equals 20% of qualified education expenses, up to a maximum credit of $2,000 per tax return. Because the rate is 20%, you need $10,000 in qualified expenses to reach the full $2,000 credit.
- Is the Lifetime Learning Credit refundable?
- The credit is nonrefundable. It can reduce your income tax to zero, but any excess is not refunded.
Every amount on this page is a published figure rather than yours. The Lifetime Learning Credit calculator takes the number you enter and works it out against them, showing which published figure it used.
The cap is per tax return, not per student
The Lifetime Learning Credit is calculated on a per-return basis, not a per-student basis. This means that no matter how many eligible students you have in your household, the maximum credit you can claim on a single tax return is 2,000. For example, if you pay qualified education expenses for yourself and two dependents, you still cannot claim more than 2,000 total. The credit equals 20% of up to 10,000 in qualified expenses paid for all eligible students combined. If your 20% calculation exceeds 2,000, the credit is capped at that amount for the entire return. This differs from the American Opportunity Credit, which is calculated separately for each student.
Maximum credit Up to $2,000 credit per return
Publication 970 (2017), Tax Benefits for Education (IRS)
It can wipe out your tax but never pays you back
The Lifetime Learning Credit is nonrefundable, meaning it can reduce the income tax you owe but cannot produce a refund beyond that amount. If the credit is larger than your total tax liability for the year, the excess is simply lost - it is not returned to you as a payment or carried over. For example, if you qualify for the full $2,000 credit but owe less than $2,000 in tax after all other credits, you will only benefit up to the amount of tax you actually owe. This makes it important to consider your overall tax situation when planning education expenses. The credit directly reduces tax dollar for dollar, which makes it more valuable than a deduction that only lowers the amount of income subject to tax. However, unlike refundable credits, it cannot put money back in your pocket beyond what you owe the IRS.
The lifetime learning credit is a nonrefunda- ble credit. This means that it can reduce your tax to zero, but if the credit is more than your tax the excess won't be refunded to you.
Publication 970 (2017), Tax Benefits for Education (IRS)
There is no cap on how many years you claim it
Unlike some education benefits that are restricted to the first few years of college, the Lifetime Learning Credit has no limit on how many years you can claim it for each student. Whether someone is in their first semester of community college, pursuing a graduate degree, or taking occasional courses to advance in their career, you can claim the credit every year those expenses are paid. There is no requirement that the student be working toward a degree or credential, and there is no lifetime maximum on the number of years the benefit is available. This makes the credit particularly useful for adult learners, part-time students, and professionals who take courses continuously over many years. As long as you meet the income limits and other eligibility rules each year, you can claim 20% of up to $10,000 in qualified expenses annually for the same student indefinitely.
There is no limit on the num- ber of years the lifetime learning credit can be claimed for each student.
Publication 970 (2017), Tax Benefits for Education (IRS)
A single course to improve job skills qualifies
Courses involving sports, games, or hobbies, as well as noncredit courses, generally do not count as qualified education expenses for the Lifetime Learning Credit. However, there is an important exception: if the course is part of the student's postsecondary degree program or is taken to acquire or improve job skills, the expenses qualify. This means a single course to upgrade workplace abilities - such as a coding bootcamp, a project management certificate, or a continuing education class for nurses - can generate a credit even if it is not part of a full degree program. The student does not need to be enrolled full-time or pursuing any particular credential. As long as the course helps the student gain or enhance skills needed in their trade or business, 20% of up to $10,000 in qualified expenses can be claimed, for a maximum credit of $2,000.
Qualified education expenses generally don't include ex- penses that relate to any course of instruction or other ed- ucation that involves sports, games, or hobbies, or any noncredit course. However, if the course of instruction or other education is part of the student's degree program or is taken by the student to acquire or improve job skills, these expenses can qualify.
Publication 970 (2017), Tax Benefits for Education (IRS)
One student, one credit, one year
For each student in each tax year, you must choose between the Lifetime Learning Credit and the American Opportunity Credit - you cannot claim both for the same person in the same year. If you elect the Lifetime Learning Credit for a child on your 2017 return, you cannot also claim the American Opportunity Credit for that same child for 2017. However, the choice is made on a per-student, per-year basis, so you could claim the American Opportunity Credit for one child and the Lifetime Learning Credit for another child in the same household in the same year. When you face this choice for a single student, the American Opportunity Credit will generally be larger because it is based on adjusted qualified education expenses that produce a higher benefit. Still, the Lifetime Learning Credit may be preferable if the student has already used the American Opportunity Credit for four prior tax years or if income exceeds that credit's limits.
If you are eligible to claim the lifetime learning credit and you are also eligible to claim the American opportu- nity credit for the same student in the same year, you can choose to claim either credit, but not both.
Publication 970 (2017), Tax Benefits for Education (IRS)
The income at which you lose the credit entirely
The Lifetime Learning Credit phases out completely once your modified adjusted gross income (MAGI) reaches certain thresholds. For 2017, if your MAGI is $66,000 or more and you file as single, head of household, or qualifying widow(er), you cannot claim the credit at all. For married couples filing jointly, the complete phaseout begins at $132,000. If your filing status is married filing separately, you are not eligible for the credit regardless of income. The income limit applies to the taxpayer claiming the credit, not the student, so a dependent student with high earnings cannot claim the credit on their own return if a parent claims them as a dependent. Between these hard cutoffs and the phaseout range below them, higher-income families gradually lose the benefit until it disappears entirely at these amounts.
Your modified adjusted gross income (MAGI) is $66,000 or more ($132,000 or more if filing married fil- ing jointly).
Publication 970 (2017), Tax Benefits for Education (IRS)
Filing separately from your spouse blocks the credit entirely
If you are married and choose the married filing separately status on your federal tax return, you cannot claim the Lifetime Learning Credit at all. This is a complete bar - unlike the income phase-out, which gradually reduces the credit, filing separately eliminates it entirely regardless of how much you paid in qualified education expenses or how low your income is. The IRS lists this as one of the threshold conditions checked before any other calculation. Even if you otherwise meet every requirement for the credit - you have eligible students, you paid qualified expenses, and your modified adjusted gross income falls well below the $66,000 single-filer limit - the separate filing status alone disqualifies you. Married taxpayers who want to claim the credit must file a joint return.
You can't claim the lifetime learning credit for 2017 if any of the following apply. Your filing status is married filing separately.
Publication 970 (2017), Tax Benefits for Education (IRS)
Paying in December for a term that starts in January still counts for this year
For the 2017 Lifetime Learning Credit, qualified education expenses include amounts paid in 2017 for academic periods that begin in 2017 or in the first 3 months of 2018. This means if you pay tuition in December 2017 for a spring semester that starts in January 2018, those expenses count toward your 2017 credit. The timing rule looks at when you made the payment, not when the classes actually begin. The Lifetime Learning Credit is worth 20% of qualified expenses, up to a maximum of $10,000 in expenses per return, which produces a maximum credit of $2,000. By treating December payments for early-2018 terms as 2017 expenses, the IRS lets you capture the credit in the year you actually parted with the money, rather than waiting until the academic period starts.
Felony drug convictions don't make the student ineligible Qualified expenses Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment) Payments for academic periods Payments made in 2017 for academic periods beginning in 2017 or beginning in the first 3 months of 2018
Publication 970 (2017), Tax Benefits for Education (IRS)
A tuition refund that arrives after you file makes you repay part of the credit
For the 2017 Lifetime Learning Credit, if you receive a refund of qualified education expenses or tax-free educational assistance after you file your 2017 income tax return, you must recapture (repay) any excess credit. You do this by refiguring your adjusted qualified education expenses for 2017, reducing them by the amount of the refund or assistance, then refiguring your credit. The Lifetime Learning Credit is 20% of qualified expenses, up to $10,000, for a maximum credit of $2,000. If the refigured credit is less than what you originally claimed, the difference is treated as additional tax in the year you received the refund or assistance. This ensures the credit reflects only the expenses you actually bore after any reimbursements.
Credit recapture. If any tax-free educational assistance for the qualified education expenses paid in 2017 or any refund of your qualified education expenses paid in 2017 is received after you file your 2017 income tax return, you must recapture (repay) any excess credit. You do this by refiguring the amount of your adjusted qualified education expenses for 2017 by reducing the expenses by the amount of the refund or tax-free educational assistance. You then refigure your education credit(s) for 2017 and figure the amount by which your 2017 tax liability would have increased if you had claimed the refigured credit(s). Include that amount as an additional tax for the year the refund or tax-free assistance was received.
Publication 970 (2017), Tax Benefits for Education (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Publication 970 (2017), Tax Benefits for Education (IRS)
- Maximum credit
Maximum credit Up to $2,000 credit per return
- Rate on qualified expenses
The amount of the lifetime learning credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students.
- Qualified expenses limit
The amount of the lifetime learning credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students.
- MAGI limit, single filers
Limit on modified adjusted gross income (MAGI) $132,000 if married filling jointly; $66,000 if single, head of household, or qualifying widow(er)
- MAGI limit, joint filers
Limit on modified adjusted gross income (MAGI) $132,000 if married filling jointly; $66,000 if single, head of household, or qualifying widow(er)