Plenty of people go back to a classroom after 60. Some want a certificate to pick up part-time work, some need a refresher for a license, and some just want a degree they never finished. What many of them never hear about is that the Lifetime Learning Credit can take a share of that tuition off your federal tax bill, and there is no age limit and no cap on how many years you can claim it.
Who Can Claim the Lifetime Learning Credit
The IRS sets three basic requirements: someone pays qualified education expenses for higher education, the student is enrolled at an eligible institution, and the student is you, your spouse, or a dependent listed on your return. A few things disqualify you:
- Your filing status is married filing separately.
- Someone else claims you as a dependent.
- Your modified adjusted gross income (MAGI) reaches $90,000 ($180,000 if married filing jointly). The credit starts shrinking before that, at $80,000 ($160,000 joint).
Unlike the American Opportunity Credit, there is no limit on the number of years you can claim this one, and the student does not need to be working toward a degree.
How Much the Credit Is Worth
The credit equals 20% of your first $10,000 of qualified expenses, so the most you can get is $2,000 per tax return per year. It is a credit, not a deduction, so it lowers your tax bill dollar for dollar. Three examples:
| Tuition and required fees paid in 2026 | Calculation | Credit |
|---|---|---|
| $1,400 (two community college classes) | $1,400 x 20% | $280 |
| $4,000 (one year part-time) | $4,000 x 20% | $800 |
| $12,000 (full-time graduate courses) | First $10,000 x 20% | $2,000 (the maximum) |
One catch: the Lifetime Learning Credit is nonrefundable. If your credit is larger than the tax you owe, it brings your bill to zero, but you do not get the leftover amount as a refund. A retiree whose income is mostly Social Security may owe little or no federal tax, which means the credit could go unused. Check your estimated tax before you count on it.
Lifetime Learning Credit vs. American Opportunity Credit
You cannot claim both for the same student in the same year, so it helps to know which fits. Both use the same income cutoff of $90,000 ($180,000 joint) and both are barred for married filing separately.
| Lifetime Learning Credit | American Opportunity Credit | |
|---|---|---|
| Maximum credit | $2,000 per return | Up to $2,500 per student |
| Refundable? | No | Partly (40%) |
| Years you can claim | No limit | First four years of college only |
| Degree required? | No (job-skill courses count) | Yes, student must be working toward a degree or credential |
| Institution EIN on Form 8863 | Not required | Required |
If you are finishing a first bachelor’s degree and have not used four years of the American Opportunity Credit, it is usually the better deal. For everyone else, including people taking one or two courses or going to graduate school, the Lifetime Learning Credit is the one to look at.
Which Courses Count
Courses toward an undergraduate, graduate, or professional degree qualify. Courses that are not part of a degree program qualify only if you take them to acquire or improve job skills. A class in medical coding or bookkeeping at a community college can count. A pottery class taken for fun generally does not.
Your Checklist Before Filing
- Look for Form 1098-T. Schools generally send it by January 31. Box 1 may differ from what you actually paid, so use your own receipts too. If it never arrives, contact the school and keep a record of your request.
- Do not double count. Expenses paid with tax-free money, such as certain scholarships or Coverdell and 529 withdrawals, cannot also be used for the credit.
- Fill out Form 8863 and attach it to your Form 1040 or 1040-SR.
- Keep records. Save receipts, the course description, and proof of enrollment in case the IRS asks.
- Use the IRS tool. The IRS Interactive Tax Assistant, “Am I eligible to claim an education credit?”, asks about your filing status, income, and expenses to help you work out which benefit fits. The IRS page estimates about 10 minutes.
How the Income Phase-Out Works
The IRS says the credit is gradually reduced if your MAGI is between $80,000 and $90,000 ($160,000 to $180,000 for joint returns), and it disappears at $90,000 ($180,000 joint). The table below applies that reduction to a single filer with $10,000 of qualified expenses, who would otherwise get the full $2,000. I calculated the figures by multiplying $2,000 by (90,000 minus MAGI) divided by 10,000.
| Single filer MAGI | Share of credit allowed | Credit on $10,000 of expenses |
|---|---|---|
| $80,000 or less | 100% | $2,000 |
| $82,000 | 80% | $1,600 |
| $85,000 | 50% | $1,000 |
| $88,000 | 20% | $400 |
| $90,000 or more | 0% | $0 |
For married couples filing jointly, the same percentages apply across the $160,000 to $180,000 range. Retirees with large IRA withdrawals or capital gains can land in this range even if their wages are zero, so check your MAGI, not just your salary.
Worked Example: Why Your Tax Bill Matters
Assume a single 66-year-old pays $4,000 in tuition for job-skills courses in 2026, so the credit is $4,000 x 20% = $800. The credit is nonrefundable, so what you actually gain depends on the tax you owe before credits:
| Tax before credits (assumed) | Credit | Credit actually used | Tax after credit |
|---|---|---|---|
| $1,200 | $800 | $800 | $400 |
| $500 | $800 | $500 | $0 (the unused $300 is lost) |
| $0 | $800 | $0 | $0 (no benefit) |
These tax amounts are made up to illustrate the rule. Your tax before credits is on your own Form 1040, so you can estimate it with last year’s return before you enroll. If you already owe nothing, this credit will not help unless your income changes. Whether your Social Security counts toward taxable income is covered in our guide to the $25,000 and $32,000 lines.
Timeline for 2026 Tuition
- Before you enroll: Confirm the school is an eligible institution, and ask whether the course is for a degree or for job skills.
- During 2026: Pay tuition and required fees and keep receipts. Under the IRS prepayment rule described in Publication 970, expenses you pay in a year for a term that begins in the first three months of the next year count for the year you paid them, not the next year, so you cannot count them twice.
- Around the end of January 2027: Watch for Form 1098-T from the school. You can still claim the credit without it in limited cases, such as when the school is not required to issue one or fails to send it after you request it and cooperate.
- Early 2027: File Form 8863 with your Form 1040 or 1040-SR.
One new rule for 2026: Publication 970 says that beginning in 2026, people claiming the American Opportunity Credit or the Lifetime Learning Credit are required to have a Social Security number that is valid for work. Check the current Form 8863 instructions if this could apply to you.
Common Mistakes
- Copying Box 1 of Form 1098-T. The form may show different amounts than you paid. Use what you actually paid in the tax year.
- Counting costs that do not qualify. The IRS excludes insurance, medical expenses, room and board and transportation, even if the school requires them. Books and supplies count only if you must pay them to the school as a condition of enrollment.
- Claiming two credits for one student. For each student, you can choose only one education credit in a year. You can use different credits for different students.
- Ignoring the phase-out. A retiree with MAGI of $85,000 may see only half of the credit, as the table above shows.
Quick Answers
Is there an age limit? No. The rules depend on enrollment and income, not age.
Can I claim it for a class I am taking just one semester? Yes, as long as the school is eligible and the course meets the rules above.
What if I pay for a grandchild’s tuition? The student must be you, your spouse, or your dependent. If the grandchild is not your dependent, you cannot claim the credit for their costs.
This article is general information, not tax advice. Check the IRS page above or a tax professional for your own situation.