Lesson: Lifetime Learning Credit

In this lesson, Nick Palazzolo, CPA, breaks down the Lifetime Learning Credit, detailing the incentives it offers to taxpayers for post-secondary education costs. He clarifies the credit amount of 20% on the first $10,000 of qualified expenses, emphasizing that a maximum of $2,000 can be claimed yearly. Nick further explores how the credit is applied on a per-taxpayer basis, rather than per student, using practical examples to illustrate scenarios where multiple qualified individuals might be included on a single tax return. Additionally, he points out the importance of being aware of phase-out limits, encouraging a close review and memorization of these critical details.