 Most of this information comes from Publication 970, Tax Benefits for Education Tax Year 2022, you can find on the IRS website, irs.gov, irs.gov. Looking at the income tax formula, we're down on the bottom portion where the credits are located. Remember in the first half of the income tax formula is in essence an income statement, although a strange one ending at the taxable income similar to net income, the bottom line of a normal income statement. We calculate the tax on the taxable income, not using one rate, but using the progressive tax system to get to the tax before credits and other taxes. Then finally, we're down to where the credits are and other taxes like self-employment tax, for example. And then we have the payments withdrawals and estimated tax payments to get to the tax refund or tax due. Also note that the credits are similar to deductions and that we like them both, but if we can get a dollar credit versus a dollar deduction, we would rather have the credit usually because we get the full dollar of benefit whereas a dollar deduction simply decreases the taxable income and the benefit will then be subject on the tax rate that we have. Also, remember that we have the credits for a non-refundable credits versus the refundable credits. Non-refundable credits do not take the tax liability below zero. Refundable credits can and when they do, it's using the tax code not as a tax system so much as a welfare or benefit program for that refundable portion. That said, we're moving on to the Lifetime Learning Credit. Remembering that there are American Opportunity Credit, Lifetime Learning Credit, you would typically be going for the American Opportunity Credit. If you can't get it, then we go to the broader category of the Lifetime Learning Credit for these two educational credits. All right, so can you claim the credit? The following rules will help you determine if you are eligible to claim the Lifetime Learning Credit on your tax return. Who can claim the credit? Generally, you can claim the Lifetime Learning Credit if all three of the following requirements are met. You pay qualified education expenses of higher educations. We have that same question of what exactly is qualified education expenses? Obviously, tuition usually would be part of it, but it could be more expensive than that. Next one, you pay the education expenses for an eligible student. Key word here, what exactly does it mean to be eligible student for the Lifetime Learning Credit? And then the next one, the eligible student is either yourself, your spouse, or a dependent. You claim on your tax return. So you're doing your tax return. You've got some social security number on your tax return of you, a spouse, a dependent, if any of those individuals are the people that incurred the expenses related to higher education, then possibly you can take the Lifetime Learning Credit or could qualify. Let's take a look at an overview of the Lifetime Learning Credit for 2022. Remember that you can compare these to what we have for the American Opportunity Credit. And we're just looking at the Lifetime Learning Credit, in this case, focusing in there. But if you can qualify for the American Opportunity Credit, then you would take that one usually. And then the broader expanded credit is the Lifetime Learning, which could pick up those items or those times when you don't qualify for the American Opportunity. All right, the maximum credit limit on the model. So the maximum credit is up to $2,000, which is less than the American Opportunity up to 2,500. Limit on modified adjusted gross income. So there's an AGI phase out of 180,000 if married filing joint, 90,000 if single head of household or qualifying surviving spouse, refundable or non-refundable. It's non-refundable. Remember the American Opportunity Credit has a refundable portion to it, which is more of a benefit generally. None of the Lifetime Learning Credit is gonna give you a benefit if your tax liability goes below zero. It's non-refundable.