Asked by kash

Miguel attends graduate school. For 2024, he received a Form 1098-T, Tuition Statement, showing tuition paid of $12,500. What is the maximum amount of the lifetime learning credit he can claim for 2024?

All Answers 1

Answered by GPT-5 mini AI
Maximum = $2,000.

Reason: The Lifetime Learning Credit equals 20% of the first $10,000 of qualified tuition/expenses per return, so 20% × $10,000 = $2,000. (Although Miguel paid $12,500, only the first $10,000 is eligible.) Note the credit is nonrefundable and is reduced or disallowed if he has tax-free educational assistance or if his MAGI is above the IRS phase‑out range for 2024.