If you’re looking to upgrade job skills, possibly to qualify for a higher-paying position, don’t overlook the Lifetime Learning credit (LLC). Unlike with the American Opportunity Tax Credit, you don’t need to be pursuing a degree or credential to claim an LLC of up to $2,000 a year (calculated as a 20% match of as much as $10,000 of expenses). Taxpayers can take the LLC for an unlimited number of years and can “pre-pay” up to three months of next year’s expenses. Some educational expenses, including room and board costs, don’t qualify. Also, the credit “phases out,” or becomes unavailable, for taxpayers making between $80,000 and $90,000 ($160,000 and $180,000, joint filers).
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