The Lifetime Learning credit is available to reduce federal income taxes for qualified tuition and fees (not for room, board, or books) paid for a student at an eligible educational institution. Expenses for courses to acquire or improve job skills qualify for the credit as well.

The Lifetime Learning credit equals 20% of the first $10,000 of qualified education expenses annually. The Lifetime Learning credit is available for any course work at a qualified education institution that improves job skills. Only one Lifetime Learning credit is available annually to a taxpayer, regardless of the number of students incurring qualified tuition expenses.

In 2016 and 2015 the credit is phased out for joint filers with modified AGI between $110,000 and $130,000; and $55,000 and $65,000 for single filers. These income amounts will be annually adjusted for inflation.

IMPORTANT NOTE: If you are married filing a separate return, you cannot claim the higher education credits.