Level 2

life time learning credit

Forum|Forum|3 years ago
February 4, 2023
2 replies
15 views

the taxpayer's employer pays for the tuition directly to the university and the employer does not pay for any tuition does the employee still qualify for the lifetime learning credit

This topic has been closed for replies.

IRonMaN

Level 15

Nope.

Slava Ukraini!

2

2018 e fileAuthor

Level 2

thank you that is what i thought but if you research the lifetime learning credit on IRS website it says you qualify for the LLC if a third party pays for tuition cost would the employer be the third party

IRonMaN

Level 15

You can't receive a tax free benefit and turn around and take a tax credit for it. That's double dipping. You can only double dip at the ice cream parlor. 🍨

Slava Ukraini!

qbteachmt

Level 15

From: https://www.irs.gov/credits-deductions/individuals/qualified-ed-expenses

Expenses Cannot Be Paid with Tax-Free Funds

You cannot claim a credit for education expenses paid with tax-free funds. You must reduce the amount of expenses paid with tax-free grants, scholarships and fellowships and other tax-free education help.

From: https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

Tax exempt funds include:

The tax-free parts of scholarships and fellowships applied to qualified expenses
The tax-free parts of a Pell grants applied to qualified expenses
Employer-provided educational assistance
Veterans' educational assistance
Any other nontaxable (tax-free) payments (other than gifts, inheritances or CARES Act grants) received as educational assistance.

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