Eduction Credit or Lifetime Learning Credit – what should I claim?

Eduction Credit or Lifetime Learning Credit. What should I claim?

The answer to this question is “It depends on the amount of your school tuition paid”

Basically, Education credit is simply $2,000 if your income is less then $65,000 and $4,000 if your income is more then $65,000 and less then $130,000.

Lifetime Learning Credit is calculated as 20% (in the vast majority of cases) of your tuition paid.

So, if your tuition paid was more then $10,000 – then you will be better off claiming Lifetime Learning Credit (form 8863) if it is less then $10,000 then it Education Credit should be your choice (form 8917)