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Qualifying for the Lifetime Learning Credit

Lifetime Learning Credit

The Lifetime Learning Credit is one of several means by which the United States system of taxation provides for the greater access to higher education by the country's residents and offsets the costs associated with these things. Prospective students interested in such programs should be sure to seek out tax credit information before beginning the process of application, in particular because HOPE credit is another means provided to this end.

The Lifetime Learning Credit and the HOPE credit cannot be claimed by the same person and used in conjunction. Another important point of the tax credit information on this program applies to the person receiving higher education and his or her relation to the taxpayer given the lifetime learning credit. The applicable student may either be the taxpayer or his or her spouse or dependent, such as a child.

United States citizens can file for the extension of a lifetime learning credit if, being single for the purposes of tax payment, their income is under $57,000, and in the event of couples who pay their taxes together, under $117,000. The amount to be gained through the lifetime learning credit can go up to $2,000.

Taxpayers considering this option should be aware of the tax credit information that this provision is administered on the basis of families and the people related to the taxpayer, rather than in reference to the individual student. In this provision can be found one of the main distinctions from the HOPE credit program.

The provisions which are made for the family involved in higher education will apply to the family as a whole without making reference to the possibility that more than one person in that family making be applying for the benefit of a lifetime learning credit. In that regard, an individual who is classified as a dependent under the tax credit information collected for the program cannot also act as an independent person in claiming the lifetime learning credit for him or herself.

The forms of higher education considered for eligibility under the lifetime learning credit program include colleges and universities, and vocational education providers, among various other kinds of higher education.

The tax credit information on the rates at which the lifetime learning credit may be provided are determined in reference to a certain amount of the expenses imposed by the costs for the education of oneself or one's dependent. The lifetime learning credit is intended to offset up to 20% of the costs imposed on the taxpayer in this way.

Before 2002, United States law placed the amount of expenses that could be covered under the program at $5,000, after which point the amount was increased to $10,000, which consequently established the maximum financial relief to be afforded under the program.

The dependents whose educational costs may be offset in this way can be considered to include the offspring of the taxpayer as are under nineteen or are under twenty-four while pursuing full-time educations, and who depend for more than half their income on the parent.

NEXT: Qualifying For Tax Credits For The Energy Star Program

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