2023 Lifetime Learning Credit
For 2023, 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 2023-01-01Source: Publication 970 (2023), Tax Benefits for Education (IRS)Verified 2026-09-03
Compared with 2022
Every figure on this page is unchanged from 2022.
| Item | 2022 | 2023 | 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 | $90,000 | $90,000 | +$0 (+0.0%) |
| MAGI limit, joint filers | $180,000 | $180,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who paid qualified education expenses in 2023 for themselves, a spouse, or a dependent enrolled at an eligible educational institution.
What changed this year, and why
New article for tax year 2023 describing the Lifetime Learning Credit maximum amount and basic eligibility rules.
Common questions
- What is the Lifetime Learning Credit?
- The Lifetime Learning Credit is a nonrefundable tax credit that helps offset the cost of higher education. It can be claimed for qualified tuition and related expenses paid for eligible students enrolled at qualifying educational institutions. Unlike some other education credits, there is no limit on the number of years a student can claim it, and it is available for courses taken to acquire or improve job skills as well as degree programs.
- What is the maximum credit amount for 2023?
- For 2023, the maximum Lifetime Learning Credit is $2,000 per tax return. The credit is nonrefundable, so it can reduce your tax to zero but any excess is not refunded to you.
- Are there income limits that affect the credit?
- The credit is subject to income-based phase-outs. If your modified adjusted gross income (MAGI) exceeds certain thresholds, the credit is gradually reduced and eventually eliminated entirely. You also cannot claim the credit if you are married filing separately, are claimed as a dependent on another person's return, or claim the American opportunity credit for the same student.
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 maximum Lifetime Learning Credit is $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 across all of them cannot exceed $2,000. The credit is calculated as 20% of up to $10,000 in qualified expenses, which equals the $2,000 maximum. Because the cap applies at the return level rather than per student, families with more than one student attending college will not receive a larger combined credit by splitting expenses among different students. The credit phases out based on your modified adjusted gross income, but regardless of how many students you support, the ceiling remains $2,000 for the entire return.
Maximum credit Up to $2,000 credit per return
Publication 970 (2023), 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 income tax liability to zero but will not result in a refund if the credit exceeds the tax you owe. For example, if you qualify for the full $2,000 credit but your total tax liability is less than $2,000, you will receive only a reduction equal to your tax and the remaining credit is forfeited. The credit cannot be carried forward to future years or claimed as a refund payment. This is different from refundable credits, which can result in a payment to you even if you owe no tax. The credit is calculated as 20% of up to $10,000 in qualified education expenses per return, yielding a maximum of $2,000, but the actual benefit you receive depends on your tax liability for the year. If you owe no tax, the credit provides no benefit for that year.
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 (2023), Tax Benefits for Education (IRS)
There is no cap on how many years you claim it
Unlike some education benefits that are limited to the first few years of college, the Lifetime Learning Credit can be claimed for an unlimited number of tax years. There is no restriction on how many years you can claim the credit for each eligible student. Whether a student is in their first year of postsecondary education or pursuing advanced coursework many years later, you can claim the credit each year you pay qualified expenses. The credit is available for all years of postsecondary education and for courses to acquire or improve job skills. This makes it particularly useful for adult learners, working professionals taking continuing education, or anyone returning to school at any stage of their career. The credit equals 20% of up to $10,000 in qualified expenses, for a maximum of $2,000 per return per year, and this benefit remains available year after year without limit.
There is no limit on the number of years the lifetime learning credit can be claimed for each student.
Publication 970 (2023), Tax Benefits for Education (IRS)
A single course to improve job skills qualifies
The Lifetime Learning Credit does not require enrollment in a degree program. A student can qualify by taking even a single course to acquire or improve job skills. The credit is available for one or more courses, meaning part-time students and working professionals taking continuing education can benefit. The courses do not need to lead to a degree or other recognized education credential. This makes the credit flexible for adults who want to enhance their career prospects through specialized training, certification preparation, or skill development without committing to a full program. Whether you are learning a new software application, improving technical abilities, or developing professional competencies, a single qualifying course can generate eligible expenses. The credit equals 20% of up to $10,000 in qualified expenses per return, for a maximum of $2,000, and this benefit applies regardless of whether the student is pursuing a formal degree.
Type of program required Student doesn't need to be pursuing a program leading to a degree or other recognized education credential
Publication 970 (2023), Tax Benefits for Education (IRS)
One student, one credit, one year
For each student in the same tax year, you must choose between the American Opportunity Credit and the Lifetime Learning Credit. You cannot claim both credits for the same student in the same year. If you have multiple students, you could potentially claim different credits for different students, but for any individual student, only one credit applies. This election is made on a per-student, per-year basis. For example, if you elect the Lifetime Learning Credit for one child on your 2023 return, you cannot also claim the American Opportunity Credit for that same child in 2023. The choice matters because the American Opportunity Credit generally provides a larger benefit when you qualify for it, but the Lifetime Learning Credit has more flexible eligibility requirements and can be claimed for more years. You should evaluate which credit provides the greater tax benefit for each student before filing.
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 (2023), 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. For 2023, you cannot claim the credit at all if your MAGI is $90,000 or more when filing single, head of household, or qualifying surviving spouse, or $180,000 or more if filing married filing jointly. The credit begins to phase out at lower income levels and disappears entirely once you reach these cutoffs. If your income exceeds these amounts, you receive no benefit from the credit regardless of qualified education expenses paid. This income limitation applies per return, not per student. Taxpayers with income below the phase-out range can claim 20% of up to $10,000 in qualified expenses for a maximum credit of $2,000, but those at or above the income thresholds receive zero credit for the tax year.
Your modified adjusted gross income (MAGI) is $90,000 or more ($180,000 or more if filing married fil- ing jointly).
Publication 970 (2023), Tax Benefits for Education (IRS)
Filing separately from your spouse blocks the credit entirely
For the 2023 Lifetime Learning Credit, taxpayers who choose the married filing separately status are completely ineligible. The IRS Publication 970 lists this filing status as one of several conditions that bar a claim entirely. Even if a married taxpayer paid qualified education expenses for themselves, a spouse, or a dependent, and otherwise met the requirements, selecting married filing separately disqualifies them from receiving the credit. This restriction applies regardless of the taxpayer's income level or the amount of eligible expenses incurred. Married couples who wish to claim the Lifetime Learning Credit must file a joint return to remain eligible. This rule is specific to the Lifetime Learning Credit and is separate from the income phase-out limits that apply to other filing statuses.
You can't claim the lifetime learning credit for 2023 if any of the following apply. • Your filing status is married filing separately.
Publication 970 (2023), Tax Benefits for Education (IRS)
Paying in December for a term that starts in January still counts for this year
For the 2023 Lifetime Learning Credit, qualified education expenses include amounts paid in 2023 for an academic period that begins in 2023 or in the first 3 months of 2024. This means if you pay tuition in December 2023 for a spring semester that starts in January 2024, those expenses count toward your 2023 credit. The rule lets you claim the credit in the year you make the payment, rather than waiting until the year the classes actually begin, as long as the term starts no later than March 31 of the following year. The credit itself is 20% of qualified expenses, up to $2,000 per return (which is 20% of the $10,000 expense limit). This timing rule applies to all eligible students for whom you claim the credit on your 2023 tax return.
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 2023 for academic periods beginning in 2023 or beginning in the first 3 months of 2024
Publication 970 (2023), Tax Benefits for Education (IRS)
The form that claims it, and where the credit lands on your return
You claim the 2023 Lifetime Learning Credit by completing Form 8863, Education Credits, and attaching it to your federal income tax return (Form 1040 or Form 1040-SR). The credit flows to Schedule 3 (Form 1040), line 3, where it is combined with other nonrefundable credits and reduces the income tax you owe. The Lifetime Learning Credit is nonrefundable, so it cannot reduce your tax below zero and does not produce a refund on its own. On Form 8863, Part III is used to figure the credit: you multiply 20% by up to $10,000 of qualified education expenses paid during the year for each eligible student. That means the maximum credit the IRS allows for 2023 is $2,000 per return, regardless of how many students you paid expenses for or how much you actually spent. The $10,000 cap on expenses and the 20% rate apply to the return as a whole, not per student, so the $2,000 limit is reached once total qualified expenses on the return hit $10,000.
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 (2023), Tax Benefits for Education (IRS)
A tuition refund that arrives after you file makes you repay part of the credit
For the 2023 Lifetime Learning Credit, if you receive a refund of qualified education expenses paid in 2023, or receive additional tax-free educational assistance for those expenses, after you have already filed your 2023 income tax return, you must recapture (repay) any excess credit. You do this by refiguring your adjusted qualified education expenses for 2023, reducing them by the amount of the refund or tax-free educational assistance. The credit is 20% of up to $10,000 in expenses, for a maximum of $2,000. If the refund or assistance reduces your qualified expenses below the amount you originally used to calculate the credit, the difference must be repaid as additional tax in the year you receive the refund or assistance.
Credit recapture. If any tax-free educational assistance for the qualified education expenses paid in 2023, or any refund of your qualified education expenses paid in 2023, is received after you file your 2023 income tax return, you must recapture (repay) any excess credit. You do this by refiguring the amount of your adjusted qualified education expenses for 2023 by reducing the expenses by the amount of the refund or tax-free educational assistance.
Publication 970 (2023), 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 (2023), 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) $180,000 if married filling jointly; $90,000 if single, head of household, or qualifying surviving spouse
- MAGI limit, joint filers
Limit on modified adjusted gross income (MAGI) $180,000 if married filling jointly; $90,000 if single, head of household, or qualifying surviving spouse