How does the Lifetime Learning Credit work in regards to tuition reimbursement from your company? If I paid $12,000 for tuition through loans and got a reimbursement from my company for about $5,000. Would I report the different under lifetime learning credit? Would I still qualify for lifetime learning credit?



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“How does the Lifetime Learning Credit work in regards to tuition reimbursement from your company? If I paid $12,000 for tuition through loans and got a reimbursement from my company for about $5,000. Would I report the different under lifetime learning credit? Would I still qualify for lifetime learning credit?:------------> The Lifetime Learning Credit is a tax credit for any person who takes college classes. It provides a tax credit of 20% of tuition expenses, with a maximum of $2K in tax credits on the first $10K of college tuition expenses. You can claim the LLC on your tax return if you are enrolled at an eligible educational institution and you were responsible for paying college expenses. Even if you took only one class, you may take advantage of the LLC.To compute the LLC, you must multiply 20% by the lesser of 1)$7K($12K-$5K) or 2) $10K, so you can deduct up to 1.4K;$7K*20%.HOWEVER, The amount of the Lifetime Learning Credit is limited over a phase-out range. If your AGI is below the phase-out, your credits are not reduced. If your income is in the middle of the phase-out range, your credits will be reduced. If your income exceeds the phase-out range, you are not eligible to claim the Lifetime Learning tax credit. For the year 2012, the income phase-out ranges will be: •$52K to $62K : Single, Head of Household, or Qualifying Widow $104K to $124K : Married Filing Jointly

How does the Lifetime Learning Credit work in regards to tuition reimbursement from your company? If I paid $12,000 for tuition through loans and got a reimbursement from my company for about $5,000. Would I report the different under lifetime learning credit? Would I still qualify for lifetime learning credit?:------------> The Lifetime Learning Credit is a tax credit for any person who takes college classes. ......................> I am a graduate student, do I still qualify? It provides a tax credit of 20% of tuition expenses, with a maximum of $2K in tax credits on the first $10K of college tuition expenses. You can claim the LLC on your tax return if you are enrolled at an eligible educational institution and you were responsible for paying college expenses...........................> I paid through loans, do I still qualify? Even if you took only one class, you may take advantage of the LLC.To compute the LLC, you must multiply 20% by the lesser of 1)$7K($12K-$5K) or 2) $10K, so you can deduct up to 1.4K;$7K*20%.HOWEVER, The amount of the Lifetime Learning Credit is limited over a phase-out range. If your AGI is below the phase-out, your credits are not reduced. If your income is in the middle of the phase-out range, your credits will be reduced. If your income exceeds the phase-out range, you are not eligible to claim the Lifetime Learning tax credit. For the year 2012, the income phase-out ranges will be: •$52K to $62K : Single, Head of Household, or Qualifying Widow $104K to $124K : Married Filing Jointly


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“I am a graduate student, do I still qualify?=============>Yes. The lifetime learning credit offers an income tax credit for graduate school expenses. You can reduce your tax liability, not your taxable income, by up to $2,000. The exact amount equals 20 percent of your qualifying educational expenses up to $10K. In order to claim this credit, you must complete Parts III and V of Form 8863 and then report the credit on your form 1040 line 49 income tax return.
“I paid through loans, do I still qualify?”-----------> yes; Unlike the Hope credit, the Lifetime Learning credit is applicable to any kind of study, including adult-education courses or a single course to improve job skills. . The credit applies to full-time or part-time post-secondary education, including undergraduate, graduate, and professional study. also, you may be able to deduct interest you pay on a qualified student loan. Generally, the amount you may deduct is the lesser of $2,500 or the amount of interest you actually paid. If you are married , then, your filing status is not married filing separately. To claim a deduction for the interest portion of your student loan payments, you must use either Form 1040 or Form 1040A to file your tax return. You can claim the deduction without itemizing, however, because the write-off counts as an adjustment to income. When repaying your student loans, you may only deduct the interest paid from your income taxes. You cannot deduct the portion of your payment that goes toward paying down the principal of your student loans.

I have same question. Thanks for the reply. More reply will be appreciated.