The Lifetime Learning Credit was passed as part of the Taxpayer Relief Act of 1997.
The Lifetime Learning Credit is available to all students taking courses from eligible postsecondary institutions, whether the student is enrolled in a degree program or merely taking a course to improve her job skills. A taxpayer may claim the credit for his dependents as well as for himself.
The Lifetime Learning Credit is equal to twenty percent of the amount a taxpayer paid in tuition and related expenses up to a maximum of $10,000. While a taxpayer may include expenses for more than one student, the maximum amount of credit available is $2,000 per family.
The amount of Lifetime Learning Credit available gradually decreases as a family's modified adjusted gross income exceeds $48,000 ($96,000 for joint filers). The credit is unavailable for taxpayers with a modified adjusted gross income of $58,000 ($116,000 for filing jointly).
To claim the Lifetime Learning Credit, you must fill out Form 8863 and attach it to your federal tax return. If you use a tax program to do your taxes, the program will ask you about educational expenses to determine if you qualify for the credit.