The LLC is available for a single course at a time. The AOTC can be used to cover course materials, but the LLC cannot. The LLC isn't limited to four years - it can be used for all years of higher ed, including skill-building courses. While it may be used to claim college tuition, it doesn't have to be used for a degree or recognized education credential like the AOTC. The LLC doesn't have to be used for college. The Lifetime Learning Tax Credit has a few differences from the American Opportunity Tax Credit. Once your MAGI exceeds $90,000 as a single filer, or $180,000 for a joint filer, no longer qualify for this credit. If your MAGI for the 2022 tax year was more than $80,000 but less than $90,000 as a single filer, you may qualify for a reduced amount (for married couples filing jointly, that's more than $160,000 but less than $180,000). The deduction can be worth the maximum of $2,500 if your MAGI was $80,000 or less as a single filer, or $160,000 or less as a married filer, filing jointly. If qualifying for the AOTC brings your tax liability to zero, you can be refunded up to 40% of the AOTC amount for which you qualify, up to $1,000. It also may apply to qualifying materials and fees. The AOTC is noteworthy because it doesn't apply only to tuition costs. The AOTC provides a maximum $2,500 per eligible student (see eligibility requirements at the IRS website) for each of the first four years of higher education. You may not claim the American Opportunity Tax Credit (AOTC) if you're claiming the Lifetime Learning Tax Credit (LLC) in the same tax year. Your modified adjusted gross income (MAGI) and filing status will inform how much you're able to deduct.
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