Lifetime Learning Credit: The Lifetime Learning Credit is a non-refundable tax credit available to taxpayers for qualified education expenses incurred for themselves, their spouses, or dependents enrolled in eligible educational institutions. It allows for a credit of up to 20% of the first $10,000 spent on qualified tuition and related expenses, providing a maximum credit of $2,000 per tax return per year.
Qualified expenses include tuition and fees required for enrollment or attendance at an eligible institution, but do not cover expenses for course materials unless they are required to be purchased directly from the institution. The credit is available for an unlimited number of years, making it beneficial for those pursuing lifelong learning and education. Eligibility phases out for taxpayers with a modified adjusted gross income (MAGI) above certain thresholds.
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