Becky potentially qualifies for the Lifetime Learning Credit, a tax benefit for education. However, since she is not a degree candidate and not a full-time student, she does not qualify for the American Opportunity Credit. The Lifetime Learning Credit may provide a partial credit based on her income.
Becky potentially qualifies for the Lifetime Learning Credit.
This is a tax benefit for education that allows individuals to claim a credit for qualifying education expenses.
The credit can be up to $2,000 per tax return and is based on a percentage of the first $10,000 of qualified education expenses.
In Becky's case, she spent $3,800 on tuition and required course fees.
Since she is not a degree candidate and not a full-time student, she does not qualify for the American Opportunity Credit.
However, as a job-related course, her expenses may still be eligible for the Lifetime Learning Credit.
It's important to note that the credit is subject to income limits.
For the year 2022, the phase-out range for the Lifetime Learning Credit begins at $71,000 of modified adjusted gross income for individuals filing as single.
Becky's modified adjusted gross income of $85,000 falls within this range, so she may still be eligible for a partial credit.