how to claim the llc
to be eligible to claim the aotc or llc the law requires a taxpayer or their dependent to get form 1098 t tuition statement from an eligible educational institution this statement helps you determine what your credit will be the form will have an amount in box 1 to show the amounts received during the year but this amount may not be the amount you can claim there are several qualified education expenses beyond tuition that can affect what amount to claim 1check the form 1098 t to make sure it is correct if it isn t correct or you do not receive the form contact your school to claim the llc you must complete form 8863 attach the completed form to your form 1040 or form 1040 sr 1you cannot claim the american opportunity credit and the lifetime learning credit at the same time figure out what you are eligible for and what is best for your situation 5other tax credits related to education expensesthe u s government subsidizes individuals higher education expenses through tax credits tax deductions and tax advantaged savings plans each of these programs lowers income tax liability for students or their parents the subsidies include the lifetime learning credit the american opportunity tax credit aotc the tuition and fees deduction and 529 savings plans 6the aotc is a credit specifically for education expenses during the first four years of higher education the aotc offers a maximum annual credit of 2 500 per eligible student if the credit brings the amount of tax you owe to zero you can have 40 of any remaining amount of the credit up to 1 000 refunded to you 2the tuition and fees deduction allows taxpayers to deduct up to 4 000 from their taxable income in eligible higher education expenses when filing their taxes 7 a 529 savings plan is designed to help people to save money for future tuition usually for their children or grandchildren through a tax advantaged savings plan 8the irs also publishes an interactive mobile application am i eligible to claim an education credit that students can use to find out if they are eligible to claim an education credit 