Question

Alexander (28) spent $3,800 for tuition and required course fees to complete two college courses during the year. Alexander cannot be claimed as a dependent on anyone else's return, and he will use the single filing status. He is not a degree candidate, nor was he a full-time student. However, the courses he took were job-related. His 2024 modified adjusted gross income was $74,000. Given the information provided, Alexander potentially qualifies for which of the following tax benefits for education?
American Opportunity Tax Credit.
Lifetime learning credit.
Alexander does not qualify for any tax benefit for education.
Tuition and fees deduction.

Answer 1

Lifetime learning credit.

Reason: The AOTC requires a student to be a degree candidate and at least half‑time, which Alexander is not, so he doesn't qualify for the American Opportunity Tax Credit. The Lifetime Learning Credit, however, is available for courses to acquire or improve job skills and does not require degree candidacy or half‑time enrollment. Alexander is not a dependent and his MAGI ($74,000) is within the 2024 income limits for the Lifetime Learning Credit, so he could claim that credit (worth 20% of qualifying tuition up to the first $10,000 of expenses — 20% of $3,800 = $760).

(Note: the tuition-and-fees deduction is not available for 2024, and you cannot claim both the LLC and the AOTC for the same student/expenses.)