Lifetime learning credit?

Question

I am 21 years old and a dependent. My parents did not pay for my education last year. Can I take the lifetime learning credit? Will I get money back from the government? I made only $3500 last year. If I owe, for example, $500 dollars (just a random guess!) will I get $1500 back? How does this tax credit work? I'm confused. Please help. Thanks :) .

Answer 1

If your parents are claiming you as a dependant you cannot claim the Hope/Lifetime Learning Credit

Publication 970 states
You cannot claim the lifetime learning credit for 2006 if any of the following apply.

Your filing status is married filing separately.

You are listed as a dependent in the Exemptions section on another person's tax return (such as your parents'). See Who Can Claim a Dependent's Expenses, later.

Your modified adjusted gross income (MAGI) is $53,000 or more ($107,000 or more in the case of a joint return). MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit.


http://www.irs.gov/publications/p970/ch03.html#d0e3068

Answer 2

If your parents can claim you as a dependent, then they could take the Lifetime Learning Credit for your college expenses, but you can't. If wouldn't do you any good anyway, since you won't owe any income taxes if you only made $3500. The Lifetime Learning Credit is what's called a non-refundable credit, which means it can only reduce your income taxes to zero, and yours are already there - you don't get back anything left over.

If your earnings are from self-employment, you'd owe self-employment tax on them, but the Lifetime Learning Credit can't apply against those. If your earnings are on a W-2, then you won't owe anything.

Answer 3

I definitely have claimed the two one among those credit over the final 2 years... a million. the money you get in a reimbursement is what you overpaid. the credit are quantities that are GIVEN to you once you furnish the mandatory evidence which you have been at college. that is like paying for college then getting a rebate you weren't waiting for. 2. neither is powerful to finance your education, those are tax credit (unfastened money) that are given to you once you already paid for college. What it does is decrease your taxable earnings as a result imparting you with a bigger refund. or in case you owe, it reduces your taxable earnings as a result reducing the quantity you may owe had you no longer been at college. 3 & 4. The 2007 Federal style 8863 it rather is the style you should use to get the credit states the desire credit can basically be claimed for 2 years for a similar pupil. The lifetime credit could be claimed all years, yet they are able to't be claimed mutually! you will no longer get this money earlier college, you will get it each year after the final semester. so which you will acquire a style from the college that states what you paid the earlier tax year for training basically costs it rather is all you could declare for those credit after which you declare it on your taxes. that is quite elementary. Google style 8863 and study the training.