2020 Lifetime Learning Credit
For 2020, 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 2020-01-01Source: Publication 970 (2020), Tax Benefits for Education (IRS)Verified 2026-09-03
Compared with 2019
| Item | 2019 | 2020 | 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 | $68,000 | $69,000 | +$1,000 (+1.5%) |
| MAGI limit, joint filers | $136,000 | $138,000 | +$2,000 (+1.5%) |
Who it applies to
Taxpayers who paid qualified education expenses in 2020 for themselves, a spouse, or a dependent claimed on their tax return, and whose modified adjusted gross income (MAGI) is below the phase-out threshold.
What changed this year, and why
The Lifetime Learning Credit for 2020 is a nonrefundable tax credit worth up to $2,000 per tax return. The credit equals 20% of the first $10,000 of qualified education expenses paid for all eligible students.
Common questions
- How is the Lifetime Learning Credit calculated?
- 20% of the first $10,000 of qualified education expenses paid for all eligible students, up to $2,000 per return.
- What expenses qualify for the Lifetime Learning Credit?
- Tuition and fees required for enrollment or attendance, including amounts required to be paid to the institution for course-related books, supplies, and equipment.
- Is the Lifetime Learning Credit refundable?
- No. It is a nonrefundable credit limited to the amount of tax you owe on your taxable income.
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 has a maximum value of $2,000 per tax return, not per student. This means that even if you pay qualified education expenses for multiple eligible students in the same year, the total credit you can claim cannot exceed $2,000. The credit is calculated as 20% of up to $10,000 in qualified expenses paid for all eligible students combined on your return. Because the cap applies at the return level rather than the student level, families with multiple students in school do not receive a separate $2,000 credit for each student. This differs from the American opportunity credit, which is calculated per student.
Maximum credit Up to $2,000 credit per return
Publication 970 (2020), Tax Benefits for Education (IRS)
It can wipe out your tax but never pays you back
The Lifetime Learning Credit is nonrefundable, which means it can reduce your tax liability to zero but cannot generate a refund beyond what you owe. Unlike refundable credits that pay out any excess, this credit stops at eliminating your tax bill entirely. The maximum credit of $2,000 represents 20% of up to $10,000 in qualified education expenses, but if your total tax for the year is less than $2,000, you cannot claim the difference as a refund. The credit's benefit is therefore limited by both the $10,000 expense cap and by how much tax you actually owe.
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 (2020), Tax Benefits for Education (IRS)
There is no cap on how many years you claim it
The Lifetime Learning Credit can be claimed for an unlimited number of years. There is no cap on how many years the credit can be claimed for each student. You may claim the credit every year you pay qualified education expenses, whether the student is pursuing a degree, taking courses to acquire or improve job skills, or enrolled part-time. This differs from the American opportunity credit, which is available for only four tax years per student. The unlimited duration makes the Lifetime Learning Credit particularly useful for lifelong learners, working professionals seeking career advancement, and students who take courses over many years without completing a formal program.
There is no limit on the num- ber of years the lifetime learning credit can be claimed for each student.
Publication 970 (2020), Tax Benefits for Education (IRS)
A single course to improve job skills qualifies
The Lifetime Learning Credit does not require the student to be pursuing a degree or other recognized education credential. A single course taken to acquire or improve job skills can qualify for the credit. This means you can claim the credit for professional development courses, continuing education classes, or skill-building workshops even if they are not part of a formal degree program. The course must be at an eligible educational institution and the student must meet other eligibility requirements. The 20% rate applies to up to $10,000 in qualified expenses per return, producing a maximum credit of $2,000. This flexibility makes the credit available to workers seeking to advance in their current field or transition to a new career through targeted training.
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 (2020), Tax Benefits for Education (IRS)
One student, one credit, one year
If you are eligible for both the Lifetime Learning Credit and the American opportunity credit for the same student in the same year, you can choose to claim either credit, but not both. This means you cannot split the credit or claim both for the same student in the same tax year. You must select which credit provides the greater tax benefit. For each student, you can elect only one of the credits for any given year. If you have multiple students, you could potentially claim the American opportunity credit for one student and the Lifetime Learning Credit for another student in the same return. The choice should be based on which credit yields the larger benefit given the qualified expenses and your tax situation.
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 (2020), Tax Benefits for Education (IRS)
The income at which you lose the credit entirely
The Lifetime Learning Credit phases out based on your modified adjusted gross income (MAGI). You cannot claim the credit at all if your MAGI reaches the income cutoff. For 2020, if you are single, head of household, or qualifying widow(er), the credit is completely eliminated when your MAGI is $69,000 or more. For married couples filing jointly, the credit phases out entirely at $138,000 or more. Between the lower threshold and these upper limits, the credit is reduced proportionally. If your income exceeds these amounts, you are ineligible for the Lifetime Learning Credit for that tax year regardless of qualified education expenses paid. The income limits apply to the taxpayer claiming the credit, not to the student receiving the education.
Your modified adjusted gross income (MAGI) is $69,000 or more ($138,000 or more if filing married fil- ing jointly).
Publication 970 (2020), Tax Benefits for Education (IRS)
Filing separately from your spouse blocks the credit entirely
Taxpayers who are married but choose the married filing separately status are completely ineligible for the Lifetime Learning Credit for 2020. This is a hard block, not an income phase-out or a reduction: if your filing status on your federal return is married filing separately, you cannot claim the credit at all, regardless of how much you spent on qualified education expenses or how low your income may be. The IRS lists this restriction alongside other disqualifying conditions such as being claimed as a dependent on another person's return, having modified adjusted gross income at or above the MAGI thresholds, or claiming the American opportunity credit for the same student. Married couples who want to take advantage of the Lifetime Learning Credit must file a joint return. The credit itself is worth 20 percent of up to $10,000 in qualified expenses, producing a maximum credit of $2,000 per return.
You can't claim the lifetime learning credit for 2020 if any of the following apply. • Your filing status is married filing separately.
Publication 970 (2020), Tax Benefits for Education (IRS)
Paying in December for a term that starts in January still counts for this year
For the 2020 Lifetime Learning Credit, the IRS treats qualified education expenses as belonging to the year you actually pay them, not the year the classes take place. If you pay tuition in December 2020 for a spring semester that starts in January 2021, those expenses count as 2020 expenses because the academic period begins in the first 3 months of 2021. This rule lets you claim the credit on your 2020 return rather than waiting until you file your 2021 return. The same timing rule applies whether you are paying for yourself, your spouse, or a dependent. Keep records showing when the payment was made and what academic period it covers, since you may need to demonstrate that the expenses qualify for 2020 if the IRS asks. The credit itself is worth 20% of qualified expenses up to $10,000, for a maximum of $2,000 per return, so timing the payment correctly can determine which year you receive that benefit.
Example 3. Glenda enrolls on a full-time basis in a de- gree program for the 2021 spring semester, which begins in January 2021. Glenda pays her tuition for the 2021 spring semester in December 2020. Because the tuition Glenda paid in 2020 relates to an academic period that begins in the first 3 months of 2021, her eligibility to claim an American opportunity credit in 2020 is determined as if the 2021 spring semester began in 2020.
Publication 970 (2020), Tax Benefits for Education (IRS)
The form that claims it, and where the credit lands on your return
For the 2020 Lifetime Learning Credit, you claim the credit by completing Form 8863 and attaching it to your federal income tax return. The form is submitted together with your Form 1040 or 1040-SR. Once the credit is calculated on Form 8863, you carry the amount onto Schedule 3 (Form 1040), line 3, which then flows to your main return. This is how the IRS tracks the nonrefundable education credit and ensures it is applied against your tax liability for the year. If you are claiming both the American opportunity credit and the lifetime learning credit on the same return, Form 8863 handles both, and Appendix A of the publication includes an example of completing the form in that situation. Keep a copy of the form with your records, as it documents the qualified expenses and the credit amount you are taking for 2020.
You claim the lifetime learning credit by completing Form 8863 and submitting it with your Form 1040 or 1040-SR. Enter the credit on Schedule 3 (Form 1040), line 3.
Publication 970 (2020), Tax Benefits for Education (IRS)
A tuition refund that arrives after you file makes you repay part of the credit
For the 2020 Lifetime Learning Credit, if you receive a refund of qualified education expenses or tax-free educational assistance after you have already filed your 2020 tax return, you must recapture (repay) any excess credit you claimed. The IRS requires you to refigure your adjusted qualified education expenses for 2020 by reducing them by the amount of the refund or assistance you received after filing. If this reduction means you should have claimed a smaller credit, you owe the difference back. This rule prevents taxpayers from keeping credit benefits on expenses they ultimately did not pay out of pocket or that were covered by tax-free aid. You handle the recapture when you file your next return, treating the excess credit as additional tax owed for that year. Keep documentation of any refunds or tax-free assistance received after filing, since you need to calculate whether recapture applies and by how much. The credit is 20% of up to $10,000 in qualified expenses, so even a modest refund can trigger a requirement to repay part of the $2,000 maximum credit.
Credit recapture. If any tax-free educational assistance for the qualified education expenses paid in 2020, or any refund of your qualified education expenses paid in 2020, is received after you file your 2020 income tax return, you must recapture (repay) any excess credit. You do this by refiguring the amount of your adjusted qualified education expenses for 2020 by reducing the expenses by the amount of the refund or tax-free educational assistance.
Publication 970 (2020), 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 (2020), 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) $138,000 if married filling jointly; $69,000 if single, head of household, or qualifying widow(er)
- MAGI limit, joint filers
Limit on modified adjusted gross income (MAGI) $138,000 if married filling jointly; $69,000 if single, head of household, or qualifying widow(er)