Can I qualify for the lifetime learning tax credit if I owe no taxes?

Question

I was reading the IRS guide for this credit and they have a series of questions to answer if you qualify. I am good until it gets to decision 8. Decision (8). Do you have a tax liability (Form 1040, line 46 minus lines 47, 48, and 49) (Form 1040A, line 28 minus lines 29 and 30)?

I didn't owe any taxes. So I didn't have a tax liability? If you don't have a tax liability it says you can't get the credit. Why is this the case. Thanks.

Answer 1

The LLC is not a refundable credit. It can only reduce your tax liability to zero. If your tax liability is already zero the LLC is of no use to you.

Answer 2

If by "owing any taxes" you mean you already paid in enough so don't have to pay when you file your taxes, you might still qualify.to take the credit and get some or all of what was withheld back.

If your total tax liability is zero, meaning if you had anything withheld you are already getting it all back, or you didn't have anything withheld but don't owe anything, then no you aren't eligible for the credit.

Answer 3

because lifetime learning credit are for those who are in school