The maximum income to get the Earned Income Tax Credit (EITC) varies depending on your filing status and the number of qualifying children you have, and income-partners.net can help you navigate these nuances to maximize your financial benefits. Understanding these limits is crucial for eligible individuals and families looking to leverage this valuable tax credit to increase their income and financial stability.
1. What is the Earned Income Tax Credit (EITC)?
The Earned Income Tax Credit (EITC) is a refundable tax credit in the United States for low- to moderate-income working individuals and families. It essentially supplements wages, offering a financial boost that can significantly improve household income. According to the IRS, the EITC aims to reduce poverty and encourage employment by providing a tax break to those who work but earn modest incomes. This initiative aligns with the goals of income-partners.net to connect individuals with opportunities for financial advancement and partnership.
1.1. Key Components of the EITC
The EITC’s value comes from several core aspects:
- Refundable Credit: Unlike non-refundable credits, if the EITC exceeds the amount of tax you owe, you receive the difference as a refund.
- Income-Based: Eligibility is primarily based on earned income, such as wages, salaries, and self-employment earnings.
- Family Size Matters: The credit amount increases with the number of qualifying children you have, up to a maximum.
- Filing Status: Whether you are single, married filing jointly, or head of household affects the income thresholds and credit amounts.
1.2. Purpose of the EITC
The EITC serves several key purposes:
- Poverty Reduction: By supplementing the income of low-wage workers, the EITC helps lift families out of poverty.
- Work Incentive: The credit encourages people to enter and remain in the workforce, as it rewards those who earn income.
- Economic Stimulus: Because recipients tend to spend the extra money they receive, the EITC injects demand into the economy.
1.3. How the EITC Works
To claim the EITC, you must file a tax return and meet specific eligibility requirements. These include:
- Earned Income: You must have earned income below certain limits.
- Adjusted Gross Income (AGI): Your AGI must also be below specified thresholds.
- Qualifying Child (if applicable): If you claim the credit with a qualifying child, that child must meet age, residency, and relationship tests.
- Other Requirements: You must have a valid Social Security number, be a U.S. citizen or resident alien, and not be claimed as a dependent by someone else.
1.4. The EITC and Income-Partners.net
Income-partners.net supports individuals in their pursuit of financial stability by providing resources and opportunities for increasing income. Understanding and utilizing the EITC is one way to achieve financial goals. Income-partners.net helps its users understand how to leverage such credits effectively to optimize their financial outcomes.
2. What Qualifies as Earned Income for the EITC?
Earned income is the backbone of EITC eligibility. It’s crucial to understand what the IRS considers “earned” versus “unearned” income. Earned income includes wages, salaries, tips, and net earnings from self-employment. It does not include investment income, Social Security benefits, or unemployment compensation. Understanding these distinctions is key to accurately determining your eligibility for the EITC.
2.1. Types of Earned Income
The IRS categorizes earned income into several types:
- Wages, Salaries, and Tips: This is the most common form of earned income, received as an employee. It’s reported on Form W-2.
- Self-Employment Income: If you own a business or work as an independent contractor, your net earnings (income minus expenses) are considered earned income.
- Statutory Employee Income: Certain workers, classified as statutory employees, also have earned income.
- Union Strike Benefits: Benefits received during a union strike are considered earned income.
- Disability Benefits: Certain disability payments received before reaching minimum retirement age can qualify as earned income.
- Nontaxable Combat Pay: This is included in earned income for EITC purposes.
2.2. What is Not Considered Earned Income?
It’s equally important to know what does not qualify as earned income:
- Interest and Dividends: Income from investments is not considered earned income.
- Pensions and Annuities: Payments from retirement accounts do not qualify.
- Social Security Benefits: These are not considered earned income for EITC purposes.
- Unemployment Benefits: Compensation received while unemployed is not earned income.
- Alimony and Child Support: These payments are not considered earned income.
- Pay for Work in Penal Institutions: Income received while incarcerated does not qualify.
2.3. Self-Employment Income and the EITC
Self-employment income can be more complex than wage income. Here’s what you need to know:
- Net Earnings: The EITC considers your net earnings from self-employment, which is your gross income minus allowable business expenses.
- Accurate Record-Keeping: Keeping detailed records of income and expenses is essential for accurately calculating your net earnings.
- Tax Obligations: Self-employed individuals must pay self-employment taxes (Social Security and Medicare) in addition to income taxes.
- Qualified Business Income (QBI) Deduction: While the QBI deduction can reduce your taxable income, it doesn’t directly affect your earned income for EITC purposes.
2.4. How to Calculate Your Earned Income
Calculating your earned income involves:
- Collecting All Relevant Documents: Gather all W-2 forms, 1099 forms, and records of self-employment income and expenses.
- Calculating Net Self-Employment Income: Subtract business expenses from gross self-employment income to arrive at net earnings.
- Adding All Earned Income Sources: Sum up all wages, salaries, tips, and net self-employment income to determine your total earned income.
2.5. Income-Partners.net Resources
Income-partners.net provides resources to help individuals understand and maximize their earned income. This includes guidance on managing self-employment income and connecting with tax professionals. By partnering with income-partners.net, you can gain access to valuable information and support for navigating the EITC and other financial opportunities.
3. Understanding Adjusted Gross Income (AGI) and Its Impact on EITC
Adjusted Gross Income (AGI) is a critical factor in determining EITC eligibility. Your AGI is your gross income minus certain deductions, such as contributions to traditional IRAs, student loan interest payments, and health savings account (HSA) contributions. The IRS uses AGI to assess whether you fall within the income limits for claiming the EITC. A lower AGI can increase your chances of qualifying for the credit, so understanding how to calculate and potentially lower your AGI is essential.
3.1. What is Adjusted Gross Income (AGI)?
AGI is calculated by taking your gross income (total income from all sources) and subtracting specific “above-the-line” deductions. These deductions are subtracted before you itemize or take the standard deduction.
3.2. Key Deductions that Reduce AGI
Several deductions can reduce your AGI, including:
- Traditional IRA Contributions: Contributions to a traditional IRA (up to certain limits) are deductible, lowering your AGI.
- Student Loan Interest: You can deduct student loan interest payments, up to $2,500 per year.
- Health Savings Account (HSA) Contributions: Contributions to an HSA are deductible, helping you reduce your AGI.
- Self-Employment Tax: You can deduct one-half of your self-employment tax from your gross income.
- Alimony Payments: If you pay alimony under a divorce or separation agreement executed before 2019, you can deduct these payments.
3.3. How AGI Affects EITC Eligibility
The IRS sets maximum AGI limits for the EITC each year. If your AGI exceeds these limits, you are not eligible for the credit, regardless of your earned income. These limits vary based on your filing status and the number of qualifying children you have.
3.4. Strategies to Potentially Lower Your AGI
While you can’t arbitrarily lower your AGI, you can take steps to maximize eligible deductions:
- Maximize Retirement Contributions: Contribute as much as possible to tax-deferred retirement accounts, such as traditional IRAs or 401(k)s.
- Take Advantage of HSA Contributions: If you are eligible for an HSA, contribute the maximum amount to reduce your AGI.
- Pay Student Loan Interest: Ensure you deduct all eligible student loan interest payments.
- Accurately Calculate Self-Employment Tax Deduction: Deduct one-half of your self-employment tax to lower your AGI.
3.5. Modified Adjusted Gross Income (MAGI)
In some cases, the IRS may use Modified Adjusted Gross Income (MAGI) to determine EITC eligibility. MAGI is similar to AGI but includes certain items added back, such as tax-exempt interest income and certain deductions. When determining EITC eligibility, it is important to check whether AGI or MAGI is used.
3.6. Income-Partners.net Support
Income-partners.net provides resources to help individuals understand and manage their AGI. By using the tools and information available on income-partners.net, you can make informed decisions about deductions and potentially improve your eligibility for the EITC.
4. EITC Income Limits: 2020 to 2024
The maximum income limits for the Earned Income Tax Credit (EITC) change annually to reflect inflation and other economic factors. Staying informed about these limits is crucial for determining your eligibility. Below are the income limits for the EITC from the 2020 to 2024 tax years, along with maximum credit amounts and investment income limits.
4.1. EITC Limits for Tax Year 2024
The EITC income limits, maximum credit amounts, and investment income limits for the 2024 tax year are as follows:
| Children or Relatives Claimed | Filing as Single, Head of Household, Married Filing Separately, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $18,591 | $25,511 |
| One | $49,084 | $56,004 |
| Two | $55,768 | $62,688 |
| Three | $59,899 | $66,819 |
Investment Income Limit: $11,600 or less
Maximum Credit Amounts:
- No Qualifying Children: $632
- 1 Qualifying Child: $4,213
- 2 Qualifying Children: $6,960
- 3 or More Qualifying Children: $7,830
4.2. EITC Limits for Tax Year 2023
For the 2023 tax year, the EITC income limits, maximum credit amounts, and investment income limits were:
| Children or Relatives Claimed | Filing as Single, Head of Household, Married Filing Separately, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $17,640 | $24,210 |
| One | $46,560 | $53,120 |
| Two | $52,918 | $59,478 |
| Three | $56,838 | $63,398 |
Investment Income Limit: $11,000 or less
Maximum Credit Amounts:
- No Qualifying Children: $600
- 1 Qualifying Child: $3,995
- 2 Qualifying Children: $6,604
- 3 or More Qualifying Children: $7,430
4.3. EITC Limits for Tax Year 2022
The EITC income limits, maximum credit amounts, and investment income limits for the 2022 tax year were:
| Children or Relatives Claimed | Filing as Single, Head of Household, Married Filing Separately, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $16,480 | $22,610 |
| One | $43,492 | $49,622 |
| Two | $49,399 | $55,529 |
| Three | $53,057 | $59,187 |
Investment Income Limit: $10,300 or less
Maximum Credit Amounts:
- No Qualifying Children: $560
- 1 Qualifying Child: $3,733
- 2 Qualifying Children: $6,164
- 3 or More Qualifying Children: $6,935
4.4. EITC Limits for Tax Year 2021
For the 2021 tax year, the EITC income limits, maximum credit amounts, and investment income limits were:
| Children or Relatives Claimed | Filing as Single, Head of Household, Married Filing Separately, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $21,430 | $27,380 |
| One | $42,158 | $48,108 |
| Two | $47,915 | $53,865 |
| Three | $51,464 | $57,414 |
Investment Income Limit: $10,000 or less
Maximum Credit Amounts:
- No Qualifying Children: $1,502
- 1 Qualifying Child: $3,618
- 2 Qualifying Children: $5,980
- 3 or More Qualifying Children: $6,728
4.5. EITC Limits for Tax Year 2020
The EITC income limits, maximum credit amounts, and investment income limits for the 2020 tax year were:
| Children or Relatives Claimed | Filing as Single, Head of Household, or Widowed | Filing as Married Filing Jointly |
|---|---|---|
| Zero | $15,820 | $21,710 |
| One | $41,756 | $47,646 |
| Two | $47,440 | $53,330 |
| Three | $50,594 | $56,844 |
Investment Income Limit: $3,650 or less
Maximum Credit Amounts:
- No Qualifying Children: $538
- 1 Qualifying Child: $3,584
- 2 Qualifying Children: $5,920
- 3 or More Qualifying Children: $6,660
4.6. Staying Updated with Income-Partners.net
Income-partners.net provides up-to-date information on EITC income limits and other eligibility requirements. By regularly visiting income-partners.net, you can ensure you have the latest information and resources to maximize your EITC claim.
5. Investment Income Limit and the EITC
In addition to earned income and AGI limits, the Earned Income Tax Credit (EITC) also has an investment income limit. This means that even if you meet the earned income and AGI requirements, you may still be ineligible for the EITC if your investment income exceeds a certain threshold. The IRS sets this limit to ensure that the credit primarily benefits those who rely on earned income rather than investments.
5.1. What Counts as Investment Income?
Investment income includes various types of income generated from assets you own. Common examples include:
- Taxable Interest: Interest earned from bank accounts, CDs, and other investments.
- Dividends: Payments received from stocks or mutual funds.
- Capital Gains: Profits from selling stocks, bonds, real estate, or other assets.
- Passive Income: Income from rental properties or businesses in which you do not actively participate.
5.2. How the Investment Income Limit Works
Each year, the IRS sets a maximum amount of investment income you can have and still qualify for the EITC. If your investment income exceeds this limit, you are not eligible for the credit, regardless of your earned income or AGI.
5.3. Investment Income Limits: 2020 to 2024
Here are the investment income limits for the EITC from the 2020 to 2024 tax years:
- Tax Year 2024: $11,600 or less
- Tax Year 2023: $11,000 or less
- Tax Year 2022: $10,300 or less
- Tax Year 2021: $10,000 or less
- Tax Year 2020: $3,650 or less
5.4. Strategies for Managing Investment Income
If you are close to the investment income limit, you may consider strategies to manage your investments and potentially lower your investment income:
- Tax-Advantaged Accounts: Invest in tax-advantaged accounts like 401(k)s or IRAs, where investment income is not taxed until withdrawal.
- Tax-Exempt Investments: Consider investing in municipal bonds, which generate tax-exempt interest income.
- Tax-Loss Harvesting: Sell investments that have lost value to offset capital gains.
- Consult a Financial Advisor: A financial advisor can help you develop a tax-efficient investment strategy.
5.5. Income-Partners.net Resources
Income-partners.net provides resources to help individuals understand and manage their investment income. By using the tools and information available on income-partners.net, you can make informed decisions about your investments and potentially improve your eligibility for the EITC.
6. Qualifying Child Rules for the EITC
If you plan to claim the Earned Income Tax Credit (EITC) with a qualifying child, it’s crucial to understand the specific rules and requirements the child must meet. The IRS has strict guidelines to prevent fraudulent claims and ensure the credit is properly allocated. These rules cover the child’s age, residency, relationship to you, and dependency.
6.1. The Four Tests for a Qualifying Child
To be considered a qualifying child for the EITC, a child must meet all four of the following tests:
- Age Test: The child must be under age 19 at the end of the tax year, or under age 24 if a full-time student. There is no age limit if the child is permanently and totally disabled.
- Residency Test: The child must live with you in the United States for more than half of the tax year. Temporary absences, such as for school, medical care, or military service, are generally not counted as time away from home.
- Relationship Test: The child must be your son, daughter, stepchild, adopted child, foster child, sibling, stepsibling, half-sibling, or a descendant of any of these (e.g., grandchild, niece, nephew).
- Dependency Test: You must claim the child as a dependent on your tax return. The child cannot provide more than half of their own financial support.
6.2. Special Rules and Exceptions
- Married Child: If the child is married, they generally cannot be claimed as a qualifying child unless they file a joint return solely to claim a refund of taxes withheld or estimated taxes paid.
- Foster Child: A foster child must be placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.
- Qualifying Child of More Than One Person: If a child meets the requirements to be a qualifying child for more than one person, the IRS has tie-breaker rules to determine who can claim the EITC with that child.
6.3. Tie-Breaker Rules
If a child meets the requirements to be a qualifying child for more than one person, the IRS uses the following tie-breaker rules:
- If only one of the persons is the child’s parent, the child is treated as the qualifying child of the parent.
- If both persons are parents but do not file a joint return together, the child is treated as the qualifying child of the parent with whom the child lived for the longer period of time during the tax year. If the child lived with each parent for the same amount of time, the child is treated as the qualifying child of the parent with the higher AGI.
- If none of the persons is the child’s parent, the child is treated as the qualifying child of the person with the highest AGI.
6.4. Documentation and Record-Keeping
To support your claim for the EITC with a qualifying child, it’s important to keep accurate records and documentation, such as:
- Birth certificates
- School records
- Medical records
- Proof of residency (e.g., utility bills, lease agreements)
- Adoption or foster care placement papers
6.5. Income-Partners.net Resources
Income-partners.net provides resources to help individuals understand and navigate the qualifying child rules for the EITC. By using the tools and information available on income-partners.net, you can ensure you meet all the requirements and maximize your EITC claim.
7. EITC for Individuals Without Qualifying Children
The Earned Income Tax Credit (EITC) is not exclusive to individuals with children. Single and married taxpayers without qualifying children can still claim the credit if they meet certain requirements. The EITC for those without qualifying children is generally smaller than the credit for those with children, but it can still provide a significant financial benefit.
7.1. Eligibility Requirements for Individuals Without Qualifying Children
To claim the EITC without a qualifying child, you must meet the following requirements:
- Age: You must be at least age 25 but under age 65 at the end of the tax year.
- Residency: You must live in the United States for more than half of the tax year.
- Dependency: You cannot be claimed as a dependent on someone else’s tax return.
- Filing Status: You cannot file as married filing separately.
- Earned Income and AGI: Your earned income and adjusted gross income (AGI) must be below certain limits, which vary each year.
- Investment Income: Your investment income must be below a certain limit, which also varies each year.
7.2. Income Limits and Credit Amounts for 2020-2024
Here are the income limits and maximum credit amounts for individuals without qualifying children from 2020 to 2024:
| Tax Year | Filing Status | Maximum AGI/Earned Income | Maximum Credit Amount | Investment Income Limit |
|---|---|---|---|---|
| 2024 | Single, Head of Household, Married Filing Separately, or Widowed | $18,591 | $632 | $11,600 |
| 2024 | Married Filing Jointly | $25,511 | $632 | $11,600 |
| 2023 | Single, Head of Household, Married Filing Separately, or Widowed | $17,640 | $600 | $11,000 |
| 2023 | Married Filing Jointly | $24,210 | $600 | $11,000 |
| 2022 | Single, Head of Household, Married Filing Separately, or Widowed | $16,480 | $560 | $10,300 |
| 2022 | Married Filing Jointly | $22,610 | $560 | $10,300 |
| 2021 | Single, Head of Household, Married Filing Separately, or Widowed | $21,430 | $1,502 | $10,000 |
| 2021 | Married Filing Jointly | $27,380 | $1,502 | $10,000 |
| 2020 | Single, Head of Household, or Widowed | $15,820 | $538 | $3,650 |
| 2020 | Married Filing Jointly | $21,710 | $538 | $3,650 |
7.3. Special Considerations
- Age Requirements: The age requirements are strictly enforced. You must be at least 25 and under 65 to claim the EITC without a qualifying child.
- Residency: You must have your main home in the United States for more than half of the tax year.
- Dependency: If someone else can claim you as a dependent, you are not eligible for the EITC.
7.4. Income-Partners.net Resources
Income-partners.net provides resources to help individuals without qualifying children understand and claim the EITC. By using the tools and information available on income-partners.net, you can determine your eligibility and maximize your EITC claim.
8. How to Claim the Earned Income Tax Credit
Claiming the Earned Income Tax Credit (EITC) involves several steps, from determining your eligibility to filing your tax return correctly. Understanding this process can help you maximize your credit and avoid potential errors.
8.1. Determine Your Eligibility
Before you begin the process of claiming the EITC, it’s essential to determine whether you meet all the eligibility requirements. This involves assessing your earned income, adjusted gross income (AGI), investment income, filing status, age (if you don’t have qualifying children), and whether you meet the qualifying child rules (if applicable).
8.2. Gather Necessary Documents
To accurately claim the EITC, you’ll need to gather all necessary documents, including:
- Social Security Cards: For you, your spouse (if filing jointly), and any qualifying children.
- W-2 Forms: From all employers, showing your wages, salaries, and withheld taxes.
- 1099 Forms: If you are self-employed or an independent contractor.
- Records of Self-Employment Income and Expenses: If you are self-employed, you’ll need detailed records of your income and expenses.
- Other Income Documents: Any other documents related to your income, such as records of union strike benefits or disability payments.
8.3. Complete Form 1040 and Schedule EIC
To claim the EITC, you must file Form 1040, U.S. Individual Income Tax Return. You’ll also need to complete Schedule EIC (Earned Income Credit) and attach it to your Form 1040. Schedule EIC requires you to provide information about your qualifying children, if applicable, including their names, Social Security numbers, and dates of birth.
8.4. Use the IRS EITC Assistant
The IRS provides an online tool called the EITC Assistant to help you determine your eligibility for the credit. This tool asks a series of questions about your income, filing status, and family situation to help you assess whether you qualify.
8.5. File Your Tax Return
Once you have completed Form 1040 and Schedule EIC, you can file your tax return. You can file electronically using tax preparation software or through a tax professional. Alternatively, you can file a paper return by mail.
8.6. Claiming the EITC Retroactively
If you were eligible for the EITC in a previous year but did not claim it, you can file an amended tax return (Form 1040-X) to claim the credit retroactively. You generally have three years from the date you filed your original return or two years from the date you paid the tax, whichever is later, to file an amended return.
8.7. Income-Partners.net Resources
Income-partners.net provides resources to help individuals navigate the process of claiming the EITC. By using the tools and information available on income-partners.net, you can ensure you accurately claim the credit and maximize your financial benefits.
9. Common Mistakes to Avoid When Claiming the EITC
Claiming the Earned Income Tax Credit (EITC) can provide a significant financial boost, but it’s crucial to avoid common mistakes that could delay your refund or even disqualify you from receiving the credit. Understanding these pitfalls can help you file your taxes accurately and efficiently.
9.1. Incorrectly Reporting Income
One of the most common mistakes is incorrectly reporting income. This includes:
- Underreporting Earned Income: Failing to include all sources of earned income, such as wages, salaries, tips, and self-employment income.
- Misclassifying Income: Mistaking unearned income (e.g., interest, dividends) for earned income.
- Not Reporting Cash Income: Failing to report cash income from side jobs or self-employment.
9.2. Errors in Claiming Qualifying Children
Claiming a qualifying child incorrectly is another frequent mistake. This includes:
- Failing to Meet the Qualifying Child Tests: Not meeting the age, residency, relationship, or dependency tests for a qualifying child.
- Claiming a Child Who is Not Your Qualifying Child: Claiming a child who is claimed by someone else or who does not meet the requirements to be your qualifying child.
- Incorrect Social Security Numbers: Providing incorrect Social Security numbers for qualifying children.
9.3. Not Meeting Residency Requirements
The EITC requires you to live in the United States for more than half of the tax year. Common residency-related mistakes include:
- Not Meeting the Residency Test: Spending too much time outside the United States during the tax year.
- Incorrectly Claiming a Qualifying Child Who Does Not Live With You: Claiming a qualifying child who does not live with you for more than half of the tax year.
9.4. Filing With the Wrong Filing Status
Your filing status affects your EITC eligibility and credit amount. Common filing status mistakes include:
- Filing as Single When Married: Filing as single when you are legally married.
- Filing as Married Filing Separately: Filing as married filing separately in most cases makes you ineligible for the EITC.
- Filing as Head of Household When Not Eligible: Filing as head of household when you do not meet the requirements.
9.5. Ignoring Investment Income Limits
Exceeding the investment income limit can disqualify you from receiving the EITC. Common investment income mistakes include:
- Not Reporting Investment Income: Failing to report all sources of investment income, such as interest, dividends, and capital gains.
- Underestimating Investment Income: Underestimating the amount of investment income you received during the tax year.
9.6. Not Keeping Adequate Records
Failing to keep adequate records can make it difficult to substantiate your EITC claim. Important records include:
- W-2 Forms
- 1099 Forms
- Records of Self-Employment Income and Expenses
- Birth Certificates and Social Security Cards for Qualifying Children
- Proof of Residency (e.g., Utility Bills, Lease Agreements)
9.7. Income-Partners.net Resources
Income-partners.net provides resources to help individuals avoid common EITC mistakes. By using the tools and information available on income-partners.net, you can ensure you file your taxes accurately and maximize your EITC claim.
10. Additional Tax Credits You May Qualify For
Qualifying for the Earned Income Tax Credit (EITC) may also make you eligible for other tax credits and benefits. These additional credits can further enhance your financial situation, providing additional savings and opportunities.
10.1. Child Tax Credit (CTC)
The Child Tax Credit (CTC) provides a credit for each qualifying child you claim as a dependent. For the 2024 tax year, the maximum CTC is $2,000 per child. To qualify for the CTC, the child must be under age 17 at the end of the tax year, be your son, daughter, stepchild, adopted child, foster child, sibling, stepsibling, half-sibling, or a descendant of any of these, and meet certain residency and dependency requirements.
10.2. Child and Dependent Care Credit
If you pay someone to care for your qualifying child or other qualifying person so you can work or look for work, you may be eligible for the Child and Dependent Care Credit. This credit can help offset the cost of childcare expenses, such as daycare, after-school programs, or in-home care.
10.3. American Opportunity Tax Credit (AOTC)
The American Opportunity Tax Credit (AOTC) is available to students pursuing higher education. If you pay tuition expenses for yourself, your spouse, or a dependent to attend an eligible educational institution, you may be able to claim the AOTC. The maximum AOTC is $2,500 per student.
10.4. Lifetime Learning Credit (LLC)
The Lifetime Learning Credit (LLC) is another education credit that can help offset the cost of tuition and fees for undergraduate, graduate, and professional degree courses. There is no limit to the number of years you can claim the LLC. The maximum LLC is $2,000 per tax return.
10.5. Saver’s Credit (Retirement Savings Contributions Credit)
The Saver’s Credit is available to low- and moderate-income taxpayers who contribute to a retirement account, such as a 401(k) or IRA.
