Remember all those payments you made for your child's college tuition and other expenses? Even if you took out a loan to help pay for your child's college tuition, take stock: You could be rewarded with a tax credit. The Lifetime Learning Tax Credit could reduce your tax bill by $2,000 if your modified adjusted gross income was $63,000 or less in 2014.
Unfortunately, you can't double-dip. If you plan to take advantage of the American Opportunity Tax Credit or any other education credit, you can't also receive a Lifetime Learning Tax Credit.
However, in most instances, the American Opportunity Tax Credit will yield a greater benefit because it's available to each qualifying student in the household, while the Lifetime Learning Tax Credit is limited to the taxpayer and has a lower threshold for qualifying expenses, such as tuition and fees, room and board, and books, supplies and equipment.
The Lifetime Learning Credit is a good choice for professional and graduate students, even those who aren't working toward a degree, because it isn't limited to the first four years of college like the American Opportunity Tax Credit [source: IRS].