2025 Lifetime Learning Credit
For 2025, 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 2025-01-01Source: Publication 970 (2025), Tax Benefits for Education (IRS)Verified 2026-09-03
Compared with 2024
Every figure on this page is unchanged from 2024.
| Item | 2024 | 2025 | 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
The credit is for a person who pays qualified education expenses for themselves, their spouse, or a dependent they claim on their return. Expenses paid by a dependent you claim, or by a third party for that dependent, count as paid by you. An eligible student here is simply someone enrolled in one or more courses at an eligible educational institution; there is no degree requirement, no half-time requirement, no cap on the number of years, and a felony drug conviction does not disqualify the student. Courses taken to acquire or improve job skills can qualify. You cannot claim the credit if your filing status is married filing separately, if you are listed as a dependent on someone else's return, if your modified adjusted gross income reaches the ceiling Publication 970 sets, if you or your spouse were a nonresident alien for part of the year without electing to be treated as a resident alien, or if you claim the American opportunity credit for the same student for the same year.
What changed this year, and why
For 2025 the lifetime learning credit is worth up to $2,000, and Publication 970 states that ceiling per return rather than per student, so paying tuition for several people does not raise it. The publication's reminders for the year restate the modified adjusted gross income phaseout and the requirement that the taxpayer or a dependent received Form 1098-T from an eligible educational institution, whether domestic or foreign. The change ahead is an identification rule rather than an amount: beginning in 2026, an individual claiming the lifetime learning credit must have a Social Security number valid for work that was issued before the due date of the return, and where the person claiming the credit is not the student, the student will also need a valid SSN to qualify.
Common questions
- How much is the lifetime learning credit for 2025?
- Up to $2,000 of qualified education expenses paid for all eligible students. Publication 970 describes the credit as a share of an initial band of qualified education expenses, and $2,000 is what that comes to once the band is full. The amount can be reduced if your modified adjusted gross income falls in the phaseout range, and it is not available at all once your income reaches the ceiling for your filing status.
- Is the lifetime learning credit per student or per return?
- Per return. Publication 970 gives the maximum as up to $2,000 per return, figured on the qualified education expenses you paid for all eligible students together. That is the main structural difference from the American opportunity credit, which is figured separately for each eligible student. Paying tuition for a second or third student in the same year does not increase the lifetime learning credit above $2,000.
- Is the lifetime learning credit refundable?
- No. The lifetime learning credit is nonrefundable, which means it can reduce your income tax to zero, but if the credit is more than your tax, the excess is not refunded to you. Publication 970 also notes the credit is limited by the amount of your income as well as the amount of your tax, so both the phaseout and your tax liability can hold it below $2,000.
- How many years can you claim the lifetime learning credit?
- There is no limit. Publication 970 states there is no cap on the number of years the lifetime learning credit can be claimed for a student, and it is available for all years of postsecondary education as well as for courses taken to acquire or improve job skills. That makes it the credit still available for a student whose American opportunity credit years have run out, or who is in graduate study.
- Does the student have to be in a degree program for the lifetime learning credit?
- No. For the lifetime learning credit an eligible student is a student enrolled in one or more courses at an eligible educational institution, and Publication 970 states the student does not need to be pursuing a program leading to a degree or other recognized education credential. A single course counts, there is no half-time enrollment test, and courses taken to acquire or improve job skills can qualify.
- What expenses qualify for the lifetime learning credit?
- Tuition and fees required for enrollment or attendance at an eligible educational institution, including amounts required to be paid to the institution for course-related books, supplies, and equipment. That is narrower than the American opportunity credit, which counts course materials however they are bought. Insurance, medical expenses including student health fees, room and board, transportation, and similar personal or family expenses do not qualify, even where the institution requires payment.
- Who can't claim the lifetime learning credit?
- You cannot claim it for 2025 if your filing status is married filing separately, if you are listed as a dependent on another person's return, if your modified adjusted gross income is at or above the ceiling for your filing status, if you or your spouse were a nonresident alien for part of the year and did not elect to be treated as a resident alien, or if you claim the American opportunity credit for the same student for the same year.
- How do I claim the lifetime learning credit, and do I need Form 1098-T?
- You claim it by completing Form 8863 and submitting it with your Form 1040. The law generally requires that you or a dependent received Form 1098-T from an eligible educational institution. You may still claim the credit where the school is not required to furnish that statement, or where it refuses to furnish one after you request it, provided you can show enrollment and substantiate the qualified tuition and related expenses you paid.
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 caps at $2,000 per tax return, regardless of how many students you paid expenses for. The IRS summary table states the maximum credit is "Up to $2,000 credit per return," and the text confirms the credit is based on "qualified education expenses paid for all eligible students." So even if you covered tuition for two children, a spouse, and yourself, the total credit on one return cannot exceed $2,000. This differs from credits that multiply per student. The 20% rate and $10,000 expense cap apply to the aggregate of everyone's qualified costs on the return, not to each individual. If your combined qualified expenses are $10,000 or more, you reach the full $2,000 credit; if they are less, you get 20% of that lower total, still limited to one credit per return.
For the tax year, you may be able to claim a lifetime learn- ing credit of up to $2,000 for qualified education expenses paid for all eligible students.
Publication 970 (2025), Tax Benefits for Education (IRS)
It can wipe out your tax but never pays you back
The IRS treats the Lifetime Learning Credit as nonrefundable. That means the credit can reduce your federal income tax liability to zero, but any amount that exceeds what you owe is not paid back to you as a refund. If your calculated credit is larger than your total tax bill for the year, the excess is simply lost. For 2025, the maximum credit is $2,000, which is 20% of up to $10,000 in qualified education expenses. Because the credit is nonrefundable, a taxpayer whose total federal income tax is less than $2,000 will not receive the full benefit of the credit and cannot get the difference as a cash refund. You should figure your expected tax liability before relying on the credit to offset it.
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 (2025), 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 two or four years of college, the Lifetime Learning Credit has no cap on how many years you can claim it. You can claim it year after year for the same student, whether they're pursuing an undergraduate degree, a graduate degree, professional certification, or just taking individual courses. The only requirements are that you continue to pay qualified expenses and meet the income limits each year. The credit is 20% of up to $10,000 in qualified expenses per return, so the maximum is $2,000 annually, and you can claim that maximum every year indefinitely as long as you have eligible expenses and your income stays below the phaseout threshold.
There is no limit on the num- ber of years the lifetime learning credit can be claimed for each student.
Publication 970 (2025), Tax Benefits for Education (IRS)
A single course to improve job skills qualifies
The Lifetime Learning Credit covers courses taken to acquire or improve job skills, even if they do not lead to a degree. The IRS overview confirms the credit is available for courses to acquire or improve job skills and that the student does not need to be pursuing a program leading to a degree or other recognized education credential. A single qualifying course is enough. The credit is also available for an unlimited number of tax years, so you can claim it repeatedly as you continue education for career advancement. The maximum credit is $2,000 per return, calculated as 20% of up to $10,000 in qualified expenses. Whether you take one class in accounting or enroll in a multi-year certificate program, the same rules apply: the course must be at an eligible institution and the expenses must be qualifying tuition and fees.
courses to acquire or improve job skills
Publication 970 (2025), Tax Benefits for Education (IRS)
One student, one credit, one year
If you qualify for both the Lifetime Learning Credit and the American opportunity credit for the same student in the same tax year, you must choose one. You cannot claim both credits for the same student in the same year. This per-student, per-year election means families with multiple students can split credits, such as claiming the American opportunity credit for one child and the Lifetime Learning Credit for another. However, for any individual student, only one credit applies. The IRS notes that if you have the choice, the American opportunity credit will generally be larger than the lifetime learning credit. The lifetime learning credit is 20% of up to $10,000 in expenses for a maximum of $2,000 per return, while the American opportunity credit has its own separate calculation and limits.
credit for the same student in the same year, you can choose to claim either credit, but not both.
Publication 970 (2025), Tax Benefits for Education (IRS)
The income at which you lose the credit entirely
For 2025, you cannot claim the federal lifetime learning credit at all if your modified adjusted gross income (MAGI) reaches the upper cutoff. The credit is completely eliminated once MAGI is $90,000 or more for single filers, or $180,000 or more for married taxpayers filing a joint return. The credit also phases out gradually for incomes between $80,000 and $90,000 (single) or between $160,000 and $180,000 (joint), meaning the credit is reduced before it disappears entirely at the upper limit. If you are married filing separately, you cannot claim the credit regardless of income. The maximum credit otherwise available is $2,000, which equals 20% of the first $10,000 of qualified education expenses. Taxpayers near the phase-out range should estimate their MAGI carefully, because even a small increase can reduce the credit or push it to zero.
The amount of your lifetime learning credit is phased out (gradually reduced) if your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). You can’t claim a lifetime learning credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint re- turn).
Publication 970 (2025), Tax Benefits for Education (IRS)
Filing separately from your spouse blocks the credit entirely
If you file your federal tax return as married filing separately, you cannot claim the Lifetime Learning Credit at all. This rule applies regardless of your income level or how much you paid in qualified education expenses. The IRS lists this filing status as one of several conditions that completely disqualify a taxpayer from the credit. In other words, even if you otherwise meet every requirement - you paid eligible tuition, your expenses fall within the 20% rate that produces up to a $2,000 maximum credit, and your modified adjusted gross income is within the allowed range - choosing married filing separately eliminates the credit entirely. Married couples who want to take advantage of the Lifetime Learning Credit must file a joint return. If one spouse has education expenses but the couple cannot file jointly for other reasons, neither spouse will be able to claim the credit for the tax year.
You can’t claim the lifetime learning credit for 2025 if any of the following apply. • Your filing status is married filing separately.
Publication 970 (2025), Tax Benefits for Education (IRS)
Paying in December for a term that starts in January still counts for this year
For the 2025 Lifetime Learning Credit, the IRS allows qualified education expenses paid in December 2025 to count toward your 2025 credit, even if the academic period doesn't begin until January, February, or March 2026. This means if you prepay tuition in late 2025 for a spring semester that starts in early 2026, those expenses are treated as if they were paid for an academic period beginning in 2025. The credit equals 20% of up to $10,000 in qualified expenses, so prepaying can help you reach the maximum $2,000 credit for the tax year. Keep records showing when you made the payment and when the academic period begins, since the timing rules are strict: the payment must occur in 2025 and the term must start within the first quarter of the following year to qualify under this provision.
For 2025, treat an academic period beginning in the first 3 months of 2026 as if it began in 2025 if qualified education expenses for the student were paid in 2025 for that academic period.
Publication 970 (2025), Tax Benefits for Education (IRS)
The form that claims it, and where the credit lands on your return
For the 2025 Lifetime Learning Credit, you claim the credit by completing Form 8863, Education Credit (American Opportunity and Lifetime Learning Credits), and submitting it with your federal income tax return. The credit then flows to Schedule 3 (Form 1040), line 3, where it reduces your tax liability as a nonrefundable credit. The Lifetime Learning Credit equals 20% of qualified education expenses up to $10,000, for a maximum credit of $2,000 per return. Keep documentation of your qualified expenses and the educational institution's employer identification number (EIN) to complete the form accurately.
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 (2025), Tax Benefits for Education (IRS)
A tuition refund that arrives after you file makes you repay part of the credit
If you receive a refund of qualified education expenses after you file your 2025 tax return, you must recapture any excess Lifetime Learning Credit. This means you refigure your adjusted qualified education expenses for 2025 by reducing them by the refund amount or any tax-free educational assistance received. If the reduced expenses would have resulted in a smaller credit than you originally claimed, you must repay the difference. The Lifetime Learning Credit is 20% of qualified expenses up to $10,000, for a maximum credit of $2,000. This recapture rule ensures the credit reflects only expenses you actually paid and kept, preventing you from claiming a credit for costs that were later refunded or covered by tax-free assistance.
Credit recapture. If any tax-free educational assistance for the qualified education expenses paid in 2025, or any refund of your qualified education expenses paid in 2025, is received after you file your 2025 income tax return, you must recapture (repay) any excess credit. You do this by refiguring the amount of your adjusted qualified education expenses for 2025 by reducing the expenses by the amount of the refund or tax-free educational assistance.
Publication 970 (2025), 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 (2025), 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