01. International Tax

We provide tailored solutions to complex global businesses doing business in the U.S. Small or multinational, we guide clients through the maze of complex U.S. international tax rules.

02. Offshore Tax Compliance

We assist clients with specialized counsel to fix noncompliance with international tax reporting and penalties. FBAR, forms 8938, 8621, 3520, 926, 5471 and 5472 are among the most common forms that we solve through compliance programs such as streamlined procedures, Voluntary Disclosure Program or the Delinquent International Information Return Submission Procedures (DIIR).

03. Small Business Tax Planning

We assist small and medium businesses with efficient tax structuring to improve efficiencies. Proper tax election, s-corp elections and partnership planning are some of the main solutions offered.

04. Controversy Tax

We guide and represent clients before the IRS including examinations and appeals, as well as represent clients in Tax Court or Federal Courts.

05. Tax Debt Resolution

We help clients to face harsh collection activities, including liens, levies and obtaining a collection alternative such as an offer in compromise, installment payment plans, among others.

06. IRS Criminal Investigations

Our Firm provides representation before IRS Criminal Investigation Division, including Malta Pension Plans and summons.

07. High Net Worth & Family Offices

Assistance with estate planning for select clients and those with cross-border operations, planning for inheritance taxes, and gift taxes in the USA.

08. Start-Ups & Business Tax

No matter how small the idea, we assist clients with the best tax planning and alternatives for their business.

09. Crypto Tax

Our Firm provides tax planning and tax advice on crypto assets and crypto events, including mining, forks, rewards, and disposition/exchange of crypto.

10. BOI Report- Corporate Transparency Act

We assist business owners, CPA and tax preparation firms to file the Beneficial Ownership Information (BOI) report with the FinCEN.

Maximizing the Lifetime Learning Credit: A Guide for Taxpayers

Tax Deductions

08.20.2025

The Lifetime Learning Credit (LLC) is a valuable tax credit designed to encourage continued education and skills development. Whether you are pursuing a degree, enhancing your professional skills, or taking courses to advance your career, the LLC can help offset the cost of higher education. This article provides a detailed overview of the Lifetime Learning Credit (LLC), eligibility requirements, and tips for maximizing this benefit.

 

Eligibility for the Lifetime Learning Credit

 The LLC applies to taxpayers who incur qualified education expenses for themselves, their spouse, or their dependents. Unlike other education credits, the LLC is not limited to degree-seeking students, making it a versatile option for lifelong learners.

 

Key Eligibility Requirements:

    • Qualified Education Expenses:
      • Tuition and fees required for enrollment or attendance at an eligible educational institution.
      • Course materials must be purchased directly from the institution as a condition of enrollment.
    • Eligible Institutions:
      • Accredited postsecondary institutions offering higher education degrees, certificates, or credentials.
      • Vocational schools and certain specialized training programs also qualify.
    • Income Limitations:
      • For the 2024 tax year, the full credit is available to taxpayers with a modified adjusted gross income (MAGI) of $80,000 or less ($160,000 for joint filers).
      • The credit phases out at higher income levels, with no eligibility beyond $90,000 ($180,000 for joint filers).
    • Filing Status:
      • The taxpayer must file as single, head of household, or married filing jointly. Married individuals filing separately are not eligible.

 

How the Credit Works

 The LLC provides a credit of up to $2,000 per tax return, calculated as 20% of the first $10,000 in qualified education expenses. Unlike some other credits, the LLC is not refundable, meaning it can reduce your tax liability to zero but will not generate a refund.

 

Example Calculation:

 If a taxpayer spends $4,000 on tuition for an advanced course in 2024, they can claim a $800 credit (20% of $4,000).

 

Maximizing the Lifetime Learning Credit

    1. Combine Education Credits Strategically:

 Taxpayers cannot claim both the American Opportunity Credit (AOTC) and the LLC for the same student in the same year. Evaluate which credit offers the greater benefit based on your circumstances.

    1. Track Expenses Carefully:

 Keep detailed records of tuition payments, course materials, and enrollment fees. Only qualified expenses are eligible, and the IRS may request documentation.

    1. Consider All Eligible Students:

 If you, your spouse, or dependents are pursuing education, you can combine their expenses under the same credit, up to the $2,000 limit.

    1. Use Form 1098-T:

 Educational institutions provide Form 1098-T to report tuition paid during the year. This form is essential for claiming the LLC.

 The LLC is unique in that it supports a wide range of educational pursuits, including non-degree programs and courses for career development. For example, professionals taking advanced English classes to improve workplace communication or individuals pursuing technical certifications can benefit from this credit.

Relevance for Taxpayers

 The Lifetime Learning Credit is an essential tool for taxpayers looking to invest in education and career advancement. It offers flexibility for nontraditional students and those pursuing professional growth, providing a significant financial incentive. Taxpayers should consult with a tax advisor to ensure they maximize this credit and remain compliant with IRS requirements.