2028 Lifetime Learning Credit
2028 LLC: 20% of first $10,000 qualified expenses = $2,000 max per return (not per student). Phase-out MAGI $80k-$90k single / $160k-$180k MFJ projected.
| Qualifying expenses | — |
| Pre-phase-out credit (20%) | — |
| MAGI | — |
| Phase-out factor | — |
| 2028 LLC | — |
The 2028 Lifetime Learning Credit (LLC) provides 20% credit on up to $10,000 in qualified education expenses = $2,000 maximum per return. Unlike AOTC, the LLC has no year limit, no half-time requirement, and works for any course (degree, certificate, single-course skill development).
LLC vs AOTC
AOTC wins for first 4 years of degree-seeking undergrad — $2,500 max, 40% refundable. LLC wins for graduate school, single courses, professional development, second degrees. You cannot claim both for the same student in the same year — choose strategically. Different students in same return: one AOTC + one LLC OK.
Per-Return Cap
LLC caps at $2,000 per tax return — not per student. Multiple students in family: total LLC stays $2,000 across all. AOTC: $2,500 per qualifying student (multiplies). For family with 2+ college students, AOTC wins overwhelmingly.
Qualified Expenses Narrower
LLC: tuition + fees required for enrollment. Does NOT include books or supplies unless required to be purchased from the school as condition of enrollment. AOTC: includes books + supplies even purchased off-campus.
Non-Refundable Limitation
LLC is non-refundable — limited to tax owed. AOTC is 40% refundable. For low-income filers with no tax liability, AOTC pays out, LLC does not. Major reason to choose AOTC when both qualify.
Last updated May 2026. Sources: IRS LLC.