What It Covers
The lifetime learning credit can be up to $2,000 per tax return, depending on the amount of eligible expenses and the amount of tax liability. The credit is 20% of the first $10,000 of eligible expenses paid for all students, up to the amount of tax on the return.
Jill attends Wanda's School of Beauty, an eligible institution. She paid $4,400 for the course of study, which included tuition, equipment, and books required for the course. The school requires that students pay for the books and equipment when registering for the course. The entire $4,400 is an eligible educational expense.