Lifetime Learning Credit (LLC): Income Limits, Rules and Calculator
The lifetime learning credit (LLC) is worth up to $2,000 per return: the IRS instructions have it equal 20% of adjusted qualified education expenses, with the expenses of all students on the return capped at $10,000 in total. It is nonrefundable, and the credit shrinks as modified adjusted gross income (MAGI) rises from $80,000 ($160,000 on a joint return) and reaches zero at $90,000 or more ($180,000 or more). Form 8863 for tax year 2025 (final) and the DRAFT Form 8863 for tax year 2026 print the same amounts. Below are a worked example of the cap, a phase-out table, the rules that differ from the American opportunity credit, and a calculator that follows the form’s line steps.
Jump to the Form 8863 calculator
Maintained by Archie Chang · Sources checked against IRS and statute text on November 2, 2026 · Methodology & sources
The lifetime learning credit: amounts by tax year
The table sets the two tax years side by side: 2025 from final IRS documents, 2026 from drafts. Section 25A(c)(1) of the Internal Revenue Code has the 20% and the $10,000 limit. The 2025 instructions carry the same paragraph on the credit as the DRAFT 2026 instructions, word for word, so it is quoted once (the 2025 citation is Instructions for Form 8863 (2025), “Lifetime Learning Credit”).
| Item | Tax year 2026 (DRAFT forms) | Tax year 2025 (final forms) |
|---|---|---|
| Maximum credit | $2,000 per return: 20% of up to $10,000 of adjusted qualified education expenses (Form 8863 lines 11 and 12) | $2,000 per return: 20% of up to $10,000 of adjusted qualified education expenses (Form 8863 lines 11 and 12) |
| Refundable part | Nonrefundable (Form 8863 line 19 and the Credit Limit Worksheet) | Nonrefundable (Form 8863 line 19 and the Credit Limit Worksheet) |
| Single, head of household, qualifying surviving spouse: MAGI | Phase-out runs from $80,000 to $90,000; the credit is zero at $90,000 or more | Phase-out runs from $80,000 to $90,000; the credit is zero at $90,000 or more |
| Married filing jointly: MAGI | Phase-out runs from $160,000 to $180,000; the credit is zero at $180,000 or more | Phase-out runs from $160,000 to $180,000; the credit is zero at $180,000 or more |
| Filing status: married filing separately | No credit: the instructions list it among the cases where an education credit cannot be claimed | No credit: the instructions list it among the cases where an education credit cannot be claimed |
| MAGI starts from | Form 1040 or 1040-SR, line 11a | Form 1040 or 1040-SR, line 11b |
| Identification test | A valid SSN is required (2026 draft) | A TIN is required (2025 instructions) |
| Where each column comes from | DRAFT Form 8863 (2026), DRAFT 2026 Instructions for Form 8863 (Sep 11, 2026) | Form 8863 (2025), the 2025 instructions, Publication 970 (2025) |
“Caution: DRAFT—NOT FOR FILING
This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information. Do not file draft forms.
[…]
Forms and instructions are subject to OMB approval before they can be officially released, so we post drafts of them until they are approved. Drafts of instructions and publications usually have some additional changes before their final release.”
“The lifetime learning credit equals 20% of adjusted qualified education expenses (defined later), up to a maximum of $10,000 of adjusted qualified education expenses per return. Therefore, the maximum lifetime learning credit you can claim on your return for the year is $2,000, regardless of the number of students for whom you paid qualified education expenses. The amount of your credit is gradually reduced (phased out) if your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). You cannot claim a credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return).”
“The Lifetime Learning Credit for any taxpayer for any taxable year is an amount equal to 20 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished during any academic period beginning in such taxable year) as does not exceed $10,000.”
“For the tax year, you may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses paid for all eligible students. There is no limit on the number of years the lifetime learning credit can be claimed for each student.”
“The lifetime learning credit is a nonrefundable 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.”
The $10,000 limit is per return, across all students
The $10,000 limit applies per return, not per student: Form 8863 adds the lifetime learning expenses of every student on line 10 before line 11 takes the smaller of that total and $10,000, so a second student’s expenses add to the first student’s until the limit is reached. The table is labelled arithmetic (ours) on those lines.
| Student 1, Part III line 31 | $8,000 |
|---|---|
| Student 2, Part III line 31 | $7,000 |
| Line 10, total of line 31 for all students | $15,000 |
| Line 11, smaller of line 10 or $10,000 | $10,000 |
| Line 12, line 11 times 20% | $2,000 |
| Line 18 when MAGI is below the phase-out range | $2,000 |
When line 10 is zero, the form says to skip lines 11 through 17, enter zero on line 18 and go to line 19; the calculator marks those lines skipped. Publication 970 (2025) works an example for tax year 2025, and the calculator returns the same $1,254 for those inputs (joint return, MAGI $161,000, $6,600 of expenses):
“Example. You are filing a joint return with a MAGI of $161,000. In 2025, you paid $6,600 of qualified education expenses. You figure the tentative lifetime learning credit (20% of the first $10,000 of qualified education expenses you paid for all eligible students). The result is a $1,320 (20% x $6,600) tentative credit. Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($1,320) by a fraction. The numerator (top part) of the fraction is $180,000 (the upper limit for those filing a joint return) minus your MAGI. The denominator (bottom part) is $20,000, the range of incomes for the phaseout ($160,000 to $180,000). The result is the amount of your phased-out (reduced) lifetime learning credit ($1,254).”
Lifetime learning credit phase-out
Section 25A(d)(1) states the income-limit amounts as fixed dollar figures, and the inflation adjustment in subsection (h) was repealed by Pub. L. 116-260. Form 8863 (2025) and the DRAFT Form 8863 (2026) print the same limits on lines 13 and 16. The IRS says no credit at $90,000 or more ($180,000 or more), and the calculator follows line 15, so at those amounts it returns nothing. The AOTC page compares the IRS’s different wordings of the top of the range.
“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 return).”
| MAGI | Line 15 | Line 17 | Credit (line 18) |
|---|---|---|---|
| Single, head of household, qualifying surviving spouse | |||
| $80,000 | $10,000 | 1.000 | $2,000 |
| $82,000 | $8,000 | 0.800 | $1,600 |
| $85,000 | $5,000 | 0.500 | $1,000 |
| $88,000 | $2,000 | 0.200 | $400 |
| $89,000 | $1,000 | 0.100 | $200 |
| $90,000 | zero or less: stop | skipped | $0 |
| Married filing jointly | |||
| $160,000 | $20,000 | 1.000 | $2,000 |
| $164,000 | $16,000 | 0.800 | $1,600 |
| $170,000 | $10,000 | 0.500 | $1,000 |
| $176,000 | $4,000 | 0.200 | $400 |
| $178,000 | $2,000 | 0.100 | $200 |
| $180,000 | zero or less: stop | skipped | $0 |
Who can use it: no half-time rule, no degree requirement, no year limit
Unlike the American opportunity credit, the lifetime learning credit has no half-time enrollment test and no requirement that the student pursue a degree or credential, and the IRS table says the student must be enrolled in one or more courses. There is no limit on the number of years the credit can be claimed for a student (Publication 970 (2025), quoted above, and the table row below). The rows below are verbatim from the IRS comparison table.
| Eligibility criteria | American Opportunity Credit (AOTC) | Lifetime Learning Credit (LLC) |
|---|---|---|
| What type of program is required to claim the credit? | The student must be pursuing a program leading to a degree or other recognized education credential. | The student must take a course to acquire or improve job skills. The student is not required to pursue a program leading to a degree or other recognized education credential. |
| How many years is the credit available? | AOTC is available ONLY for 4 years per eligible student. | LLC is available for an unlimited number of tax years. |
| Can a convicted felons claim the credit? | The student cannot have been convicted of a state or federal felony for possessing or distributing a controlled substance. | Felony drug convictions do not make the student ineligible. |
| Is the credit refundable? | AOTC is partially refundable, 40%. | LLC is non-refundable. |
The felony drug conviction rule that limits the American opportunity credit does not apply to the lifetime learning credit, according to both documents:
“Felony drug convictions don’t make the student ineligible”
“Felony drug convictions don’t make the student ineligible”
Publication 970 (2025) describes the expenses, with a narrower rule for books, supplies and equipment than the American opportunity credit has:
“For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills.”
“Related expenses. Student activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment or attendance.”
Tax-free educational assistance, refunds and prepaid expenses work the same way for both credits; the American opportunity tax credit page quotes the passages.
Publication 970 (2025) lists these cases where the credit cannot be claimed:
“You can’t claim the lifetime learning credit for 2025 if any of the following apply.
Your filing status is married filing separately.
[…]
You are listed as a dependent on another person’s tax return (such as your parents’). See Who Can Claim a Dependent’s Expenses, later.
Your modified adjusted gross income (MAGI) is $90,000 or more ($180,000 or more if filing married filing jointly). MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit.
You (or your spouse) were a nonresident alien for any part of 2025 and the nonresident alien didn’t elect to be treated as a resident alien for tax purposes. More information on nonresident aliens can be found in Pub. 519.
You claim the American opportunity credit (see chapter 2) for the same student in 2025.”
Moving to the lifetime learning credit after the AOTC years
A student whose American opportunity credit years are used up moves to the lifetime learning credit after the four tax years of AOTC: on Form 8863 line 23, a “Yes” sends the student to line 31. Publication 970 (2025) gives an example, and the IRS allows one credit per student, never both for the same student:
“Has the American opportunity credit been claimed for this student for any 4 prior tax years? Yes—Stop! Go to line 31 for this student.”
“Example 1. Sharon was eligible for the American opportunity credit for 2019, 2020, 2022, and 2024. Sharon’s parents claimed the American opportunity credit for Sharon on their 2019, 2020, and 2022 tax returns. Sharon claimed the American opportunity credit on her 2024 tax return. The American opportunity credit has been claimed for Sharon for 4 tax years before 2025. Therefore, the American opportunity credit can’t be claimed for Sharon for 2025. If Sharon files Form 8863 for 2025, the box on line 23 should be checked “Yes” and only the lifetime learning credit would be able to be claimed.”
“Caution: You cannot claim the lifetime learning credit for any student if you claim the American opportunity credit for that student for the same tax year.”
Form 1098-T and the education credits
Either credit comes with a Form 1098-T question on Form 8863 line 22, and Publication 970 (2025) ties eligibility to the form with listed exceptions. The Form 1098-T page on this site quotes that text and explains why box 1 can differ from the expenses used on Form 8863.
Tax year 2026, the identification rule and the full form
For tax year 2025 the instructions require a TIN issued by the due date of the return; for tax year 2026 the DRAFT instructions require a valid SSN, which 26 U.S.C. 25A(g)(1) as amended by Pub. L. 119-21 states for taxable years beginning after December 31, 2025. The American opportunity tax credit page has the full quotes on that rule, the whole Form 8863 line table, the table of passages that differ on the DRAFT 2026 form and the whole IRS comparison table. The table below is Part II and line 31, the lines the lifetime learning credit uses.
| Part | Line | What Form 8863 (2025) says |
|---|---|---|
| Part II, Nonrefundable Education Credits | 10 | After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter -0- on line 18, and go to line 19 |
| Part II, Nonrefundable Education Credits | 11 | Enter the smaller of line 10 or $10,000 |
| Part II, Nonrefundable Education Credits | 12 | Multiply line 11 by 20% (0.20) |
| Part II, Nonrefundable Education Credits | 13 | Enter $180,000 if married filing jointly; or $90,000 if single, head of household, or qualifying surviving spouse |
| Part II, Nonrefundable Education Credits | 14 | Enter the amount from Form 1040 or 1040-SR, line 11b. But if you’re filing Form 2555 or 4563, or you’re excluding income from Puerto Rico, see Pub. 970 for the amount to enter instead |
| Part II, Nonrefundable Education Credits | 15 | Subtract line 14 from line 13. If zero or less, skip lines 16 and 17, enter -0- on line 18, and go to line 19 |
| Part II, Nonrefundable Education Credits | 16 | Enter $20,000 if married filing jointly; or $10,000 if single, head of household, or qualifying surviving spouse |
| Part II, Nonrefundable Education Credits | 17 | If line 15 is: • Equal to or more than line 16, enter 1.000 on line 17 and go to line 18; or • Less than line 16, divide line 15 by line 16. Enter the result as a decimal (rounded to at least three places). |
| Part II, Nonrefundable Education Credits | 18 | Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet. See instructions |
| Part III, Student and Educational Institution Information | 31 | Adjusted qualified education expenses (see instructions). Include the total of all amounts from all Parts III, line 31, on Part II, line 10 |
Calculator: Form 8863 lines for your figures
Enter MAGI and each student’s expenses; students start on the lifetime learning credit, which uses Part II (lines 10 to 19). The calculator starts on tax year 2025, the final Form 8863, and its tax year 2026 setting uses the DRAFT form, which can change. Line 17 is rounded to three decimal places (the form says “at least three places”). The result is an estimate from the line steps, not a return: it does not test the Form 1098-T or institution EIN rules, the 2025 TIN requirement, nonresident alien status or the Form 8862 caution, and it applies the tax limit only if you enter Credit Limit Worksheet line 6.
Your figures
Expenses are the adjusted amount: paid for the year, reduced by tax-free educational assistance and refunds (instructions, Adjusted Qualified Education Expenses Worksheet). MAGI is the figure defined in the instructions and Publication 970 (2025).
Form 8863 arithmetic, tax year 2025
Enter your figures (MAGI and each student’s expenses, 0 or more) to see the Form 8863 lines.
For related figures see the standard deduction, tax brackets and earned income credit pages, and for the other education items the Form 1098-E page, the 529 contribution limit and the student loan calculator.
Frequently asked questions
How much is the lifetime learning credit?
Up to $2,000 per return. The instructions say the credit equals 20% of adjusted qualified education expenses, up to a maximum of $10,000 of expenses per return, so the maximum is $2,000 regardless of the number of students. Form 8863 line 11 is the smaller of line 10 or $10,000, and line 12 is line 11 times 20% (0.20).
What are the income limits for the lifetime learning credit?
The same limits apply in tax year 2025 and, on the draft instructions, tax year 2026. The instructions reduce the credit gradually across a MAGI range of $80,000 to $90,000 ($160,000 to $180,000 on a joint return) and allow none at $90,000 or more ($180,000 or more). On Form 8863, line 15 is line 13 minus line 14, and the form says to skip lines 16 and 17 when it is zero or less.
Is the lifetime learning credit refundable?
No. Publication 970 (2025) calls it a nonrefundable credit that can reduce tax to zero, with any excess not refunded. Form 8863 line 19 and its Credit Limit Worksheet apply the limit based on tax: the smaller of the nonrefundable credits on lines 18 and 9 combined and the amount on line 6 of the worksheet.
How many years can the lifetime learning credit be claimed?
The IRS compare table says it is available for an unlimited number of tax years, and Publication 970 (2025) says there is no limit on the number of years it can be claimed for each student. The same table says it is available for all years of postsecondary education and for any courses taken to acquire or improve job skills.
Does the student need to be in a degree program?
The IRS comparison table and Publication 970 (2025) word it differently. The table says the student must take a course to acquire or improve job skills and is not required to pursue a program leading to a degree or other recognized education credential, and that the student must be enrolled in one or more courses. Publication 970 (2025) says the course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills.
What expenses count for the lifetime learning credit?
Tuition and fees required for enrollment or attendance. The instructions say amounts for books, supplies, and equipment qualify only if required to be paid to the institution as a condition of enrollment or attendance, which is narrower than the AOTC rule on course materials. Room and board, insurance, medical expenses and transportation are listed as expenses that do not qualify.
What is the difference between the AOTC and the lifetime learning credit?
The IRS compare table lists the differences: the AOTC is up to $2,500 per eligible student and 40% refundable, limited to 4 years per student and to students at least half-time in a degree program who have not finished 4 years of postsecondary education; the LLC is up to $2,000 per return, nonrefundable, with no year limit. The instructions add that where a student could use either, the AOTC will always be greater than the LLC.
What changes for tax year 2026?
For tax year 2026 the draft instructions and Publication 970 (2025) require a valid Social Security number, valid for work and issued before the due date of the return, for either education credit, including this one; the draft adds that a dependent student needs one too. The draft form’s dollar amounts equal the 2025 form’s, and both 2026 documents were marked DRAFT when we checked on November 2, 2026.
Related pages and calculators
Sources (checked November 2, 2026): IRS: Education credits - AOTC and LLC · IRS: About Form 8863, Education Credits · IRS: Form 8863 (2025), PDF · IRS: 2025 Instructions for Form 8863, PDF · IRS: DRAFT Form 8863 (2026), PDF · IRS: DRAFT 2026 Instructions for Form 8863, PDF · IRS: Publication 970 (2025), Tax Benefits for Education, PDF · Office of the Law Revision Counsel: 26 U.S.C. 25A