Can I take a Lifetime learning credit?

Question

I am going to school at night and pay tuition. I have student loans (NOT a grant) for it. Can I deduct the tuition and the loan interest both? THANKS

Answer 1

You can take the Lifetime Learning credit for your tuition and fees as long as you are attending an eligible institution. If students at your school and in your program are eligible to apply for FAFSA student aid, then it's eligible. The courses must be for an academic period like a semester, quarter or trimester - day or weeklong seminars wouldn't count. Expenses paid with a loan are eligible, since you'll have to pay it back.

Student loan interest is deductible if it's for expenses when you were enrolled at least half-time in a degree, certification or other program leading to a recognized educational credential. Your loan doesn't have to be through FAFSA to be eligible.

There are income limits on both of these benefits, but if your income is under $55K, the limits don't affect you - if you're over that, check it out, you might still be eligible.

If you can be claimed as a dependent, you can't take the credit but the person who can claim you can take it.

Good luck in your studies.

Answer 2

You can take the lifetime learning credit, however, if it's your first two years in college, you are eligible for the hope credit or tuition and fees deduction, not the lifetime learning credit. If it's after the first two years of college, then it would be the lifetime learning credit or the tuition and fees deduction. Also, the lifetime learning credit/tuition and fees deduction gets phased out if your income is too high. Also, you can't get the credits if someone else can claim you as their dependent. And yes, if you meet all the requirements, you can deduct both the student loan interest, and the tuition.

Answer 3

Yes. Student loans are considered out of pocket when used to pay qualified tuition expenses, so you can take either the tuition and fees deduction or the lifetime learning credit for the amount of tuition paid both out of pocket and with student loans.

Even if you do this, you can still deduct the student loan interest you pay each year if you otherwise qualify.

Answer 4

Lifetime learning credit is something completely different than what you are talking about. The Lifetime Learning credit is a dollar-for-dollar decrease in your tax liability (Gross income minus deductions), up to $2000. There is also the Hope Credit for students in their first two years of undergrad.

You can deduct your student loan interest, but not tuition!