2026 Lifetime Learning Credit income limits
| Filing status | Full credit up to | Phased out completely at |
|---|---|---|
| Single / Head of Household | $80,000 MAGI | $90,000 MAGI |
| Married Filing Jointly | $160,000 MAGI | $180,000 MAGI |
Source: Internal Revenue Service
The credit is reduced once you hit the income phase-out threshold. You can use Form 8863 to calculate how much you’ll receive for the LLC.
Note: If you’re near the edge of the phase-out range, it’s worth comparing the Lifetime Learning Credit against the American Opportunity Tax Credit to see which one can save you more.
Why the LLC income limits haven’t changed since 2021
Congress hasn’t indexed the LLC’s income limits for inflation, unlike some other credits that adjust every year. That means the same $80,000 and $160,000 thresholds from 2021 still apply for 2026, even though wages have risen since then.
Note: See IRS Publication 970, Tax Benefits for Education, for the full rules.
LLC vs. AOTC income limits: what’s different
The LLC and American Opportunity Tax Credit (AOTC) have the same MAGI phaseout ranges. The AOTC is worth up to $2,500 per eligible student, while the LLC is worth up to $2,000 per tax return, regardless of how many students qualify.
Check your eligibility beyond income
To determine whether you qualify for the LLC:
- Confirm you, your spouse, or a dependent you claim paid qualified education expenses for an eligible student.
- Calculate your MAGI for the year.
- Confirm your filing status isn’t married filing separately.
- Use Form 8863 to figure your actual credit if you’re inside the phase-out range.
