The Lifetime Learning Credit for Online MBA Students

Tax season is a never ending chore for many of us. With due dates at set intervals at every year in the United States, it is important for students to be on top of their federal tax returns into to maximize their deductions.

Students are often unaware of what is available to them in terms of credit deductions for studying. Their lifetime of learning may go unnoticed and it’s possible that students could be missing out on significant returns! The Lifetime Learning Credit is one of the options available to adult online MBA students in an accredited program. It offers continuous learners with a sizable deduction for their federal return. However, what is it and how do students file for the Lifetime Learning Credit?

What is the Lifetime Learning Credit for my Online MBA Program?

The Lifetime Learning Credit is available to students who have incurred educational expenses. It is available to those who are enrolled on at least a part time basis in an accredited program of study, which is the basis of many online MBA programs. The credit allows the student to deduct up to $2,000 USD per year and up to 20% of the total education cost throughout each year of study.

There are some stipulations though. Students cannot claim this credit if they’re earning more than $55,000 USD when filing single or $100,000 for joint filings. It can also be claimed for a student’s own personal education; not for a child or other dependent.

How Do I Claim the Lifetime Learning Credit for my Online MBA Program?

To use the Lifetime Learning Credit, students must submit Form 8863 with their federal tax return. This form outlines that expenses were incurred as a result of education and allows students to itemize their deductions. Educational institutions are also required to file a 1098-T statement with the IRS in order to qualify their programs for tax deduction purposes.

Should I Claim the Lifetime Learning Credit for my Online MBA Program?

The betterment of one’s self through education is a definite enhancement to society at large, so it is very much worth the while for students to claim the Lifetime Learning Credit if they’re qualified candidates for the deduction. While it may seem like additional hassle when filing taxes, the reward can be great. There is no reason for a student to restrict himself from using what is available to him throughout studying!

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