2018 Lifetime Learning Credit
For 2018, the Lifetime Learning Credit is $2,000 (Maximum credit), 20% (Rate on qualified expenses) and $10,000 (Qualified expenses limit).
Effective 2018-01-01Source: Publication 970 (2018), Tax Benefits for Education (IRS)Verified 2026-08-29
Compared with 2017
Every figure on this page is unchanged from 2017.
| Item | 2017 | 2018 | 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%) |
Who it applies to
Taxpayers who pay qualified education expenses for themselves, a spouse, or a dependent and who claim the Lifetime Learning Credit on their 2018 federal income tax return.
What changed this year, and why
The 2018 Lifetime Learning Credit allows a maximum credit of $2,000 per return. The credit is 20% of the first $10,000 of qualified education expenses paid for all eligible students. These figures are unchanged from 2017.
Common questions
- How is the Lifetime Learning Credit calculated?
- The credit equals 20% of qualified education expenses, up to $10,000 of expenses per return, producing a maximum credit of $2,000. The $10,000 expense cap applies across all eligible students on the return, so the credit cannot exceed $2,000 regardless of how many students are claimed.
- Did the figures change from 2017 to 2018?
- For 2017, the maximum credit was $2,000, the rate was 20%, and the qualified expense limit was $10,000 - the same as in 2018.
The cap is per tax return, not per student
The Lifetime Learning Credit has a maximum cap that applies to your entire tax return, regardless of how many eligible students you have. Even if you paid qualified education expenses for multiple students in the same year, you cannot claim more than $2,000 total for the Lifetime Learning Credit on that return. This differs from some other education benefits that allow a separate credit for each student. The cap reflects the fact that the credit is calculated as 20% of qualified expenses, and those expenses are limited to $10,000 per return. If you have two children in college, for example, you still cannot exceed $2,000 in Lifetime Learning Credit for the year, no matter how much you spent on their education combined.
Maximum credit Up to $2,000 credit per return
Publication 970 (2018), Tax Benefits for Education (IRS)
It can wipe out your tax but never pays you back
The Lifetime Learning Credit is classified as a nonrefundable credit. This means that it can directly reduce the income tax you owe, potentially all the way to zero. However, if the credit amount exceeds your total tax liability for the year, the IRS will not refund the remaining balance to you. For example, if you qualify for the full $2,000 credit but your tax bill is less than that amount, you only benefit up to what you actually owe. This is an important distinction from refundable credits, which can produce a refund payment even when you owe no tax at all. The nonrefundable nature means the credit's actual value depends on how much tax you owe, and it is limited to the amount of tax you must pay on your taxable income.
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 (2018), Tax Benefits for Education (IRS)
There is no cap on how many years you claim it
Unlike the American Opportunity Credit, which is limited to four tax years per student, the Lifetime Learning Credit has no cap on the number of years it can be claimed. There is no limit on the number of years the lifetime learning credit can be claimed for each student. This means a student could potentially claim the credit every year they are enrolled in qualifying education, whether they are pursuing a degree or taking courses to acquire or improve job skills. The credit is available for all years of postsecondary education. This makes it especially useful for adult learners who return to school over many years, or for students in programs that extend beyond four years.
There is no limit on the num- ber of years the lifetime learning credit can be claimed for each student.
Publication 970 (2018), Tax Benefits for Education (IRS)
A single course to improve job skills qualifies
You do not need to be enrolled in a degree program to qualify for the Lifetime Learning Credit. Qualified education expenses include courses taken to acquire or improve job skills, even if those courses do not lead to a degree or certificate. If a course is part of a student's degree program, the expenses automatically qualify. If it is not part of a degree program, the expenses can still qualify as long as the course is taken to acquire or improve job skills. This broad eligibility rule makes the credit available to a wide range of learners, including working professionals who take a single class to enhance their career abilities, even if they are not pursuing any formal credential. Expenses for sports, games, hobbies, and noncredit courses are generally excluded unless they meet the job-skills test.
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 (2018), Tax Benefits for Education (IRS)
One student, one credit, one year
When the same student is eligible for both the American Opportunity Credit and the Lifetime Learning Credit in the same tax year, the taxpayer must choose one. You cannot claim both credits for the same student in the same year. The taxpayer can elect for any year only one of the credits. Because the American Opportunity Credit is generally larger when a student qualifies for it, choosing the Lifetime Learning Credit for that student would mean giving up a bigger benefit. This election is made on a per-student, per-year basis, so if you have multiple students, you could potentially claim the American Opportunity Credit for one and the Lifetime Learning Credit for another, but each individual student can only generate one of the two credits in any given year.
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 (2018), 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 reaches certain thresholds. You cannot claim the credit at all if your MAGI is $67,000 or more when filing single, head of household, or qualifying widow(er), or $134,000 or more if filing married filing jointly. These income limits also apply to taxpayers filing married filing separately, who are ineligible entirely. Between the phaseout range and these hard cutoffs, higher-income taxpayers may receive a reduced credit or none at all. MAGI is a modified version of adjusted gross income that adds back certain exclusions and deductions. The income threshold for married filing jointly is exactly double the single threshold, reflecting the joint return structure.
Your modified adjusted gross income (MAGI) is $67,000 or more ($134,000 or more if filing married fil- ing jointly).
Publication 970 (2018), 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 (2018), 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.