Why am I not able to get the lifetime learning credit?

Forum|Forum|1 year ago
February 27, 2025
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I have 3 college tuitions for my kids that all graduated in May 2024. Turbo says I am not eligible for the LLC and I can't find why. Our taxable income is 156k; no one can claim us as a dependent as we are claiming our children as dependents; we do not have scholarships, grants, etc that exceed the educational expenses; and we did have education expenses with 3 separate tuitions stated on our 1098-T forms for each child. When I looked up LLC requirements, it said for married filing jointly (which we are) MAGI limit is 160k to 190k. Please help me understand why we are unable to qualify for the LLC credit.

TurboTax Deluxe Online

rjs

Employee

Taxable income and MAGI are two different things. Taxable income (Form 1040 line 15) is your AGI (line 11) minus your standard deduction or itemized deductions (line 12). If your taxable income on Form 1040 line 15 is $156,000, then your AGI must be at least $185,000. MAGI for the Lifetime Learning Credit is AGI plus a few uncommon additions, so your MAGI is your AGI or higher. The MAGI limit for the Lifetime Learning Credit is $180,000, not $190,000, so you are over the limit.