The Lifetime Learning Credit for US Expats
Updated on October 09, 2025
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For US expats around the globe, the Lifetime Learning Credit is one of the more straightforward education tax credits to claim, as long as your school qualifies and you keep good records.
It’s not the biggest credit, but it’s flexible and has no time limit. You can claim it year after year, making it especially useful for postgraduate study and career development.
What is the Lifetime Learning Credit?
The Lifetime Learning Credit (LLC) is a US tax credit designed to ease the cost of higher education. It works by reducing your US tax bill based on what you spend on tuition and certain fees.
Additionally, it’s not limited to undergraduates; you can use it for graduate programs, professional courses, or even skill-upgrading classes.
Put simply, it’s the IRS’s way of giving you a little relief if you’re paying for education, whether for yourself, your spouse, or your dependents. Unlike the American Opportunity Tax Credit (AOTC), which is only for the first four years of college, the LLC is broader and more flexible.
Can US expats claim the Lifetime Learning Credit while living abroad?
Yes. US expats and their children can claim the LLC while living abroad as long as they meet the eligibility rules. Living abroad doesn’t disqualify you. You’re still a US taxpayer in the IRS’s eyes, so if you pay tuition, you can potentially use the LLC.
Eligibility rules for the Lifetime Learning Credit (LLC)
- Income limits: For 2024-2025, you can claim the LLC if your modified adjusted gross income (MAGI) is:
- Single filers: Full credit if MAGI ≤ US$80,000; partial credit until US$90,000.
- Married filing jointly: Full credit if MAGI ≤ US$160,000; partial credit until US$180,000.
- Over those amounts? You’re not eligible.
- Filing status: You must file as single, head of household, or married filing jointly. You’re not eligible if you file as ‘married filing separately’.
- Residency: The credit applies regardless of where you live.
- Student type: The student (you, your spouse, or dependent) must be enrolled at least part-time in an eligible institution.
For many expats, the trickiest part is not income or location, it’s whether your school abroad qualifies.
Do foreign universities qualify for the Lifetime Learning Credit?
Yes, but not all of them. The IRS keeps a list of foreign institutions approved for federal student aid programs. You can claim the credit if your school abroad appears on that list. Major universities such as Oxford, Cambridge, and University College London are included.
You can check for your university at the official Federal Student Aid. Foreign schools have a six-character code starting with “G.” You can also ask the school’s financial aid office to confirm.
Note: Some smaller colleges and specialized programs abroad may not qualify. Always check the Federal School Code List before enrolling or making payments.
How much is the Lifetime Learning Credit?
The LLC covers 20% of up to US$10,000 in qualified education expenses. The maximum you can claim is US$2,000 per tax return, per year—not per student.
So if you’re paying for multiple family members in school, you don’t get a US$2,000 credit for each of them. The limit applies once per return, no matter how many students are covered. This is the same whether you live in the US or abroad.
Examples:
- Pay US$4,000 in tuition → you get a US$800 credit.
- Pay US$8,000 in tuition → you get a US$1,600 credit.
- Pay US$12,000 in tuition → you still only get US$2,000.
Bottom line: once you hit US$10,000 in expenses, you’ve maxed it out. Anything above that doesn’t increase your credit.
Find out which tax credits you can claim. Contact us for help.
What expenses qualify for the Lifetime Learning Credit?
Here’s a summary table for the qualified and unqualified expenses for the LLC:
LLC: Eligible vs. ineligible expenses
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Eligible expenses |
Ineligible expenses |
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How do I claim the Lifetime Learning Credit abroad?
In the US, schools issue Form 1098-T to report tuition, but most foreign institutions do not. If your school can’t provide one, you can still claim the credit as long as you keep proper documentation. Here’s a step-by-step guide on claiming the Lifetime Learning Credit:
- Collect documents: If your school doesn’t issue Form 1098-T, request a statement that shows tuition paid. Keep receipts and proof of enrollment.
- Convert payments: Translate foreign tuition into US dollars using IRS-approved exchange rates.
- Report expenses: Fill out Form 8863 (Education Credits).
- File with your return: Attach it to your Form 1040.
Can I claim the LLC if my child gets financial aid?
Yes. Grants and scholarships lower the expenses you can use. If tuition is US$12,000 and your child gets a US$6,000 scholarship, only the remaining US$6,000 counts toward the credit.
Is the Lifetime Learning Credit refundable?
No. The LLC is nonrefundable. It can reduce your US tax bill to zero, but it won’t generate a refund if the credit exceeds your tax liability. This is a big contrast with the American Opportunity Tax Credit (AOTC), which has a partially refundable portion.
If you’re unsure whether your foreign program qualifies, or you’re juggling foreign income with IRS rules, it’s worth talking to a tax professional who works with expats. The paperwork may feel overwhelming, but the savings can add up over time.
FAQs
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How many times can I claim the Lifetime Learning Credit?
You can claim the Lifetime Learning Credit for as many years as you want; there’s no limit. That’s what makes it especially valuable for lifelong learners and grad students. Just remember, you can only claim it once per tax year.
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What is the difference between the Lifetime Learning Credit (LLC) and the American Opportunity Tax Credit (AOTC)?
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Can I claim the Lifetime Learning Credit and the American Opportunity Credit together?
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Can I claim both the LLC and the AOTC in the same year?
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Can expats claim both the Lifetime Learning Credit and Foreign Tax Credit?
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